Excise Applicable for silvaasa

[Guest]

Hi,

We are planning to deal with one Steel producer in Silvassa and procure some steel wires/bars from him. Since Excise Silvassa is Excise free zone, do i need to pay excise if we are taking material out of Silvaasa. We are asking supplier to deliver material to Gandhinagar and they are charging us 12.5% Excise on invoice amount. Please explain.

[KASTURI SETHI]

Sh.Harshad Chaudhari,

What do you mean by "Excise Free Zone" ? Whether area-based exemption or Special Economic Zone ? Area based exemption is also of different types. Whether 100% EOU ? You intend to buy steel wires/bars from a manufacturing unit in Silvasa under which type of Central Excise Free Zone it falls ?

AI Summary

Excise applicability when procuring from excise-free zones depends on zone type and the destination of removal. Excise applicability when procuring goods from Silvassa depends on the specific nature of Silvassa's excise-free status-whether an area-based exemption, a Special Economic Zone regime, or a 100% EOU-and on whether removal to a non-exempt destination (here, Gandhinagar) triggers duty; the legitimacy of the supplier's 12.5% excise charge must be determined by clarifying the supplier's exemption type and the statutory removal rules.