Dear Sir,
'A' is the unit in SEZ. 'B' has taken erection contract with material of 'A'.
My client 'C',who is dealer registered under excise is the supplier of machinery to 'B' which are to be installed at 'A'. 'C' purchase material from manufacturer as well as from some other dealers.
' A' want all purchase without charging excise.
Now my query is,
How can 'C' supply to ' A' through 'B' without charging Excise.
How can 'C' purchase goods from Manufacturer/dealer without excise to supply to SEZ 'A'.
I want detailed procedure/notification/circular etc.
PL. reply positively.
Thanks.
Sumeet Tholle,
CA.
SEZ Unit 'A' Must Use CT-3 for Duty-Free Machinery; Dealer 'C' Cannot Supply Without Excise Duty Payment. A query was raised regarding the procedure for supplying machinery to a Special Economic Zone (SEZ) unit 'A' without charging excise duty. 'C,' a dealer registered under excise, supplies machinery to 'B,' who has a contract with 'A.' The response clarified that 'C' cannot supply excisable goods without payment of duty, as they are registered only to pass on cenvat credit. Instead, 'A' can procure goods directly from a manufacturer without excise duty using a CT-3 certificate. Goods can be sent directly to 'B,' the job worker, with appropriate invoicing. Supplies to SEZ are treated as exports and are exempt from excise duty. (AI Summary)
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