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.

AI Summary

Manufacturing firm seeks clarification on availing excise duty credit for returned SEZ goods under Rule 16, Central Excise Rules 2002. A manufacturing company inquired about the correct procedure for handling goods returned from a Special Economic Zone (SEZ) unit, which were initially cleared without duty under the ARE1 form. Upon return, duty was paid, and they sought clarification on availing excise duty credit under Rule 16 of the Central Excise Rules 2002. A respondent explained that goods returned from SEZ to the Domestic Tariff Area (DTA) are treated as imports, making them eligible for CENVAT credit. Additionally, if goods require repair, they can be sent back to the SEZ with appropriate permissions under SEZ rules.