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

Discrepancy in Export Definitions: SEZ Rules vs. Central Excise Rules; Impacts on Duty Refunds and Rebates. There is a lack of uniformity between SEZ Rules and Central Excise Rules regarding the definition of export. SEZ Rules consider clearances to SEZs as exports, while amended Central Excise Rules define export as the physical removal of goods out of the country. Deemed exports do not qualify for terminal excise duty refunds or rebates, unlike actual exports where rebates are allowed even if CENVAT credit is availed and duty is debited to the CENVAT account.