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

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.