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

[MUKUND THAKKAR]

Sales return from SEZ unit treated as Import for you. it is not possible from SEZ to return goods (cleared goods) in DTA without payment of applicable duty.. availed the credit on respected bill of entry filed by SEZ supplier for clearance of said goods.

[YAGAY and SUN]

We endorse the view of Mr. Mukund Thakkar.

[KASTURI SETHI]

I support the views of Sh.Mukund Thakkar, Sir.

[Nash Industries I Pvt Ltd]

Line with the other experts on the matter

Regards

S.Ramaswamy

[Ganeshan Kalyani]

Thanks Sri Mukund Ji. Thanks.

AI Summary

Sales return from SEZ treated as import; duty payment required on return to domestic tariff area.
Sales returns from SEZ units are treated as imports for the returning supplier; goods cleared to an SEZ under LUT without excise will, on return to the domestic tariff area, attract applicable excise/customs duty because the SEZ supplier availed credit on the bill of entry, so duty payment is required on return rather than duty-free acceptance into DTA.