DEFINATION OF EXPORT AS PER SEZ RULES AND CENTRAL EXCISE

[Suresh Hanamshet]

THERE NO UNIFORMITY IN THE DEFINITION OF EXPORT AS PER SEZ RULES AND CENTRAL EXCISE RULES. AS PER SEZ RULES CLEARANCES TO SEZ ARE TREATED AS EXPORT WHEWRE AS AS PER AMENDED CENTRAL EXCISE RULES PHYSICAL REMOVAL OF GOODS OUT OF THE COUNTRY IS EXPORT. DEEMED EXPORTS ARE NOT TREATED AS EXPORT AND NO REFUND OF TERMINAL EXCISE DUTY OR REBATE IS AVAILED BY THE SUPPLIER. THIS IS NOT THE CASE IN ACTUAL EXPORTS REBATE IS ADMISSIBLE EVEN WHEN CENVAT CREDIT IS AVAILED AND DUTY IS DEBITED TO CENVAT ACCOUNT.

AI Summary

Definition of export: SEZ clearance viewed as export while central excise requires physical removal of goods. SEZ rules treat clearances to an SEZ as export, whereas amended Central Excise rules define export as physical removal of goods from the country; as a result, deemed exports are not eligible for terminal excise duty refunds or supplier rebates, while actual exports qualify for rebate even if CENVAT credit was availed and duty debited to the CENVAT account.