Supply from Domestic Tariff Area to SEZ treated as export; ARE 1/Bill procedures and duty liability prescribed. Supplies from the Domestic Tariff Area to SEZ units or developers are treated as exports and procurement is governed by the SEZ Rules procurement provision. Movement of goods to SEZs shall be on ARE 1 (or ARE 1 plus Bill of Export when entitlements are availed) against a general Bond or Letter of Undertaking furnished by the DTA supplier. Such supplies are exempt from Central Excise duty and eligible for rebate under the Central Excise rules, applied mutatis mutandis. Where proof of admittance into the SEZ is not furnished within the prescribed period, duty is to be demanded from the DTA supplier; suppliers bear liability for loss, diversion or fraudulent proof of export.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Supply from Domestic Tariff Area to SEZ treated as export; ARE 1/Bill procedures and duty liability prescribed.
Supplies from the Domestic Tariff Area to SEZ units or developers are treated as exports and procurement is governed by the SEZ Rules procurement provision. Movement of goods to SEZs shall be on ARE 1 (or ARE 1 plus Bill of Export when entitlements are availed) against a general Bond or Letter of Undertaking furnished by the DTA supplier. Such supplies are exempt from Central Excise duty and eligible for rebate under the Central Excise rules, applied mutatis mutandis. Where proof of admittance into the SEZ is not furnished within the prescribed period, duty is to be demanded from the DTA supplier; suppliers bear liability for loss, diversion or fraudulent proof of export.
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