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

[Guest]

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.