Sales ret from SEZ

[venkat eswaran]

DEar all,

One of our SEZ customer returning goods as sales return. We used to send SEZ units under LUT without excise duty. Now the SEZ unit demanding form us one DD equal to excise amount to pay customs. If we pay this it will be loss for us. Kindly clarify what is the exact procedure to sales return from SEZ units?

Thanks in advance

Venkat

AI Summary

Business Faces Financial Loss on SEZ Sales Return; Experts Advise Using Bill of Entry Credit for Duty Payment A business dealing with a Special Economic Zone (SEZ) customer is experiencing a sales return issue. The customer is demanding a demand draft equivalent to the excise amount for customs, which would result in a financial loss for the business. Experts in the discussion forum agree that sales returns from SEZ units are treated as imports, and it is not possible to return goods to the Domestic Tariff Area (DTA) without paying the applicable duty. The consensus is to utilize the credit on the bill of entry filed by the SEZ supplier for clearance of the goods.