Goods return back from Sez unit

[Guest]

Dear Sir,

We are a mfg co, we had clear goods to SEZ unit without payment of duty under ARE1 form but such goods are returned back to us from such SEZ unit on payment of duty, please explain us whether it is correct and whether we can avail such credit of excise duty paid on such goods under rule 16 opf central excise rules 2002.Please explain us the procedure.

[MUKUND THAKKAR]

sir,

Goods return from SEZ to DTA supplier treated as Import so what ever material cleared from SEZ Duty is applicable on the same. you can eligible to take cenvat credit. second option if your goods is repairable and sending back to SEZ. ask your customer to obtain permission under SEZ rules 50 and return back after necessary repair.

[Guest]

Dear Sir,

Thanks for the reply, But is it necessary for us to debit the duty if proof of export is not received and if we had not debited even then can we avail cenvat credit of such goods returned back from SEZ unit.

AI Summary

Goods returned from SEZ treated as import: duty applies and cenvat credit may be claimable; repair returns need SEZ permission. Goods returned from an SEZ to the domestic supplier are treated as deemed imports and attract excise duty; the adviser indicated that the supplier can be eligible to take Cenvat credit for duty paid on such returned goods. Where goods are repairable, SEZ Rules 50 permission may be sought to send them back after repair. The querist further queried whether debiting duty is necessary if proof of export was not received, and whether Cenvat credit is available if duty was not debited on return.