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.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Classification of imported duty free containers as capital assets affects duty calculation on sale to domestic tariff area under SEZ rules. A SEZ developer imported containers duty free, capitalised them and used them for storage; it intends to sell the containers into the domestic tariff area and has paid advance duty by applying a depreciated assessable value under SEZ rule 49(ii). The question is whether those imported containers qualify as capital assets under SEZ/Excise rules and whether computing duty on sale to DTA by reference to the depreciated book value under rule 49(ii) is the correct method.