Supply to SEZ Unit v/s BRC

[Ashok Chopra]

Respected Forum,

I had supplied goods to SEZ Unit also submitted copy of ARE-1 duly endorsed by Authorised Officer of SEZ as proof of export. 180 days have been lapsed and payment from SEZ unit.  my Range office is pressurising  me either to submit BRC or excise duty alognwith interest. 

1. Am i entitle to deposit excise duty in this case?

2. If yes, is there any procedure of extention of time? Pls provide copy of notification and act etc. to satisfy my range

3. If i am not entitled, pls provide me copy of notification or act to satisfy my range

Anxiously awaiting for your kind co-operation

 regards

[GANTI SARMA]

What is the problem to get the BRC from your bank ? How you have cleared the goods to SEZ by duty payment or under LUT ? If you cleared under LUT, you submit Annexure-19 with Original & Duplicate copies of ARE-1, xerox copies of SEZ entry certificate. If you cleared on duty payment, you can  file refund claim and get the amount back. This is nothing but export.

 

[Sunil Vaidya]

It is not clear from your query whether you received the payment from SEZ unit or not. It is also not clear whether your transaction is in in IC or FC. Due to various frauds detected in the past now a days the Department insist for the realisation certificate. However, endorsement of the Authorised Officer of SEZ is suffice to prove that you have supplied the goods to the SEZ. 

AI Summary

Proof of export: SEZ unit endorsement can suffice, but authorities may require BRC or documentary bank realisation evidence.
Where goods supplied to an SEZ are supported by an ARE-1 endorsed by the SEZ authorised officer but no bank realisation certificate is produced within 180 days, the supplier who cleared under a Letter of Undertaking must submit Annexure 19 with original and duplicate ARE-1 copies and SEZ entry certificate copies; if duty was paid at clearance instead of using LUT, the supplier should file a duty refund claim. Departmental practice may nevertheless request a BRC as additional proof.