Sales to SEZ

[CLARENCE PEREIRA]

We have an order for supply to a unit in SEZ. They are claiming that Central Excise is not applicable. I remember reading that in the Budget proposals of 28.02.2015 this exemption has been removed and only for physical exports out of India is Central Excise Duty NIL. Please clarify

No, Only rebate claim under rule 18 are removed in budget. you may supply the goods to SEZ withut CE duty under ARE-1.

For SEZ queries, pls be assist and call send a mail - vssezconsultants@gmail.com, 9845114401

[phaniraju konidena]

You can clear excisable goods without payment of duty under LUT, which can be obtained from the jurisdictional Asst./Dy.Commissioner over your factory. Also you can clear on payment of duty and claim rebate under Rule 18 of CER, 2002 read with CBEC Circular No.1001/8/2015-CX dtd.28.04.2015.

AI Summary

Central excise exemption for SEZ supplies permitted under ARE-1 or via LUT; rebate claim route modified.
Supplies to a SEZ unit can be cleared without payment of central excise by using ARE-1 or by furnishing a Letter of Undertaking (LUT) from the jurisdictional officer; alternatively goods may be cleared on payment of duty and a duty refund claimed under the rebate mechanism, subject to the procedural framework and recent budgetary adjustments affecting rebate claims.