Selling of duty free imported containers in DTA from SEZ

[Sharma Sharma]

Dear Sir,

Our company is a SEZ developer and during last many years, we had imported a number of duty free containers along with material. These containers were duly capitalised in our books of Accounts and were used as material storage till now.

Now, we want to sell these containers to DTA market. Since these are asset in our books of account, we calculated assessable depreciated value under SEZ rule 49 (ii) and paid advance duty on these depreciated value.

My query :

Do these container fall under Capital asset under SEZ/Excise rule (on such basis, we calculated our duty) ? If yes, please share any link of rule in support of this. And is our basis of calculation according to SEZ rule 49(ii) is the right way ?

Regards.

AI Summary

SEZ Developer Seeks Clarification on Selling Duty-Free Containers in DTA Market Under SEZ Rule 49(ii) A company operating as a Special Economic Zone (SEZ) developer inquired about selling duty-free imported containers, previously used for material storage, in the Domestic Tariff Area (DTA) market. The containers were capitalized as assets in their accounts, and the company calculated the assessable depreciated value under SEZ rule 49(ii), paying advance duty accordingly. They sought clarification on whether these containers qualify as capital assets under SEZ/Excise rules and whether their duty calculation method was correct. A respondent asked if the issue was resolved but did not provide further guidance.