SEZ duty rebate remains available despite non-filing of Bill of Export where substantive entitlement is otherwise met.

Rebate of duty on goods supplied from the Domestic Tariff Area to an SEZ is admissible where the supplies are made under ARE-1 and the substantive conditions for rebate are satisfied. Although the Bill of Export is a prescribed procedural requirement under the SEZ procedure, its non-filing was treated as a procedural lapse because the goods were duly received in the SEZ and their duty-paid character was not disputed. The substantive rebate benefit could not be denied on that ground alone, and the claim was therefore sustainable.

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Issues: Whether rebate of duty on goods supplied from Domestic Tariff Area to Special Economic Zone was admissible when the supplies were made under ARE-1 and the Bill of Export was not filed.

Analysis: Supplies from DTA to SEZ are eligible for rebate under Rule 18 of the Central Excise Rules, 2002, read with the SEZ procedure and the Board circulars. Rule 30 of the Special Economic Zones Rules, 2006 contemplates supply under ARE-1 and also refers to the Bill of Export in the relevant procedure. Although filing of the Bill of Export is a prescribed requirement, the goods had been duly received in SEZ and the duty paid nature of the goods was not in dispute. The omission was treated as a procedural lapse, and the substantive rebate benefit could not be denied on that ground alone.

Conclusion: Rebate was admissible and the rejection of the claim was not justified.

Final Conclusion: The revision failed and the order allowing rebate on SEZ supplies was sustained.

Ratio Decidendi: A procedural omission in filing the Bill of Export does not by itself defeat rebate on duty paid goods supplied to SEZ where the substantive conditions of entitlement are otherwise satisfied.

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