Claim of rebate of duty supply made to SEZ Unit after amendment in Notification No.8/2015

[SHAHID HASHMI]

Whether we can claim the rebate against supply made to SEZ unit after amendment made in Rule 18 vide Notification No.8/2015-C.E.(N.T.) dated 1/3/2015.

Rule 18. Rebate of duty - Where any goods are exported, the Central Government may, by notification grant rebate of duty on such excisable goods or duty paid on materials used in the manufacture or processing of such goods and the rebate shall be subject to such conditions or limitations, if any, and fulfilment of such procedure, as may be specified in the notification.

8. In the said rules, in rule 18, for the Explanation, the following Explanation shall be substituted, namely:- “Explanation. - For the purposes of this rule, “export”, with its grammatical variations and cognate expressions, meanstaking goods out of India to a place outside India and includes shipment of goods as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft.”.​

AI Summary

Rebate Inadmissible for SEZ Supplies After Amendment to Rule 18 via Notification No.8/2015-C.E.(N.T.) A query was raised about the eligibility to claim a rebate on duty for supplies made to a Special Economic Zone (SEZ) unit following an amendment to Rule 18 via Notification No.8/2015-C.E.(N.T.) dated March 1, 2015. Rule 18 allows for a rebate of duty on exported excisable goods, subject to conditions specified in the notification. The amendment redefined 'export' to exclude supplies to SEZs, leading to the conclusion that claiming a rebate for such supplies is now inadmissible. This interpretation was confirmed in a response on the discussion forum.