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.”.​

[Mahir S]

Sir,

From the recent changes made in the definition of Export, it may surely be assumed that henceforth export to SEZ under claim for rebate is now inadmissible.

AI Summary

Rebate of duty: supplies to SEZ units excluded from 'export' definition under amended Rule 18, rebate claims inadmissible. The substituted Explanation to Rule 18 defines ''export'' as taking goods out of India and includes only shipment of goods as provisions or stores for ships or supplies to foreign going aircraft; consequently, supplies to SEZ units fall outside this definition and rebate claims on such supplies are treated as inadmissible under the amended rule.