EXCISE EXEMPTION FOR SEZ UNITS

[MEGACORP IMPEX]

HELLO & GREETINGS!

I WISH TO MAKE A SALE TO A NEWLY REGISTERED INDUSTRY IN A S.E.Z. IN ANDHRA PRADESH. THEY SAY THEY WILL ISSUE FORM 'I' AND HENCE NO EXCISE DUTY SHOULD BE CHARGED. IS THIS CORRECT? CAN I SUPPLY THE MATERIAL WITHOUT CHARGING ANY EXCISE DUTY AGAINST FORM I? IN THIS CASE HOW DO I GET REFUND OF EXCISE PAID BY ME DURING PURCHASE?

AI Summary

Megacorp Impex Learns SEZ Transactions Require Excise Duty Despite Form 'I' Exemption for Central Sales Tax A company, referred to as Megacorp Impex, inquired about selling goods to a newly registered industry in a Special Economic Zone (SEZ) in Andhra Pradesh without charging excise duty, based on the issuance of Form 'I.' A respondent clarified that Form 'I' pertains to avoiding Central Sales Tax (CST) but not excise duty. The respondent also mentioned Rule 30 of the SEZ Rules, 2006, which outlines relevant procedures. Megacorp Impex expressed gratitude for the clarification, finding the information helpful in understanding the tax obligations for SEZ transactions.