EXCISE DUTY APPLICABLE FOR REMOVAL OF INPUTS AS SUCH TO SEZ

[Eeranna Halakatti]

We are Manufacturer of Sheet Metal Enclosures. We got order from one of our customer who is situated in Special Economic Zone. Before processing his order he has canceled the order due to some problem.

We already bought some excise inputs for processing his order, so we discussed and decided to send the inputs to customer which we bought for processing his order.

Query.

1. Can I raise the excise invoice to him?

I would request you to suggest on this.

Thanks and Regards

Eeranna Halakatti

AI Summary

Manufacturer Can Issue Excise Invoice for Canceled SEZ Order if CENVAT Credit Taken; Follow SEZ Export Procedures A manufacturer of sheet metal enclosures intended to supply inputs to a customer in a Special Economic Zone (SEZ) but faced an order cancellation. The manufacturer queried whether they could issue an excise invoice for the inputs already purchased. Responses clarified that if CENVAT credit was taken on the inputs, an excise invoice could be issued, allowing credit transfer to the customer. It was emphasized that SEZ supplies are considered exports, and goods should be cleared under bond or as duty-paid goods with a rebate claim. The manufacturer was advised to follow specific procedures for SEZ transactions.