Supply to SEZ-Procedure ??

[Sumeet Tholle]

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.

AI Summary

Duty-free supply to SEZ allowed as export; direct delivery to job-worker via bond and CT-3 permitted.
SEZ units may obtain excisable goods duty-free as treated exports; manufacturers can send goods directly to a job-worker on the basis of a bond and CT-3 certificate with invoices addressed to both the job-worker and the SEZ unit marked "for and on behalf of" the SEZ unit. Registered cenvatable dealers cannot procure excisable goods without paying duty. Supplies to SEZs are treated as export clearances and exempt from Central Excise; pure labour erection and commissioning at the SEZ is taxable as service, not as works contract.