Sale to SEZ located in other state

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my clients importing goods and kept in customs bonded ware house which is located in SEZ and same would be supplying to various customers located in SEZ / EOU within the state or outside the states.

The authority asking us to submit the form I for supplying goods to SEZ located in other states. Our contention is that, since the goods supplied from DTA to SEZ located in other states only then the question of Form I would arise. Since, our case supply from SEZ to SEZ within the state as well as other states, so the all the transactions deemed to be taken place outside the country. So its not the purview of the authority in India.

Having said that, the authority insisting to get the Form I from the SEZ from customers outside the state who purchases the goods.

Please advise me, how to submit the suitable reply and any cited case laws.

Thanks in Advance.

[KASTURI SETHI]

SEZ Officer has vast powers to safeguard revenue. So you are advised to follow his instructions in your interest. Case laws are helpful only when SCN has been issued. Here cordial relations will solve your problem. There is no harm or problem in filling Form-1 as desired by the Govt. Officer.

[YAGAY andSUN]

Please confirm which types of goods are being supplied by you to SEZ Unit/Developer.

[Ramesh Kothari]

Kasturiji

When law not asked why to submit the Form1 it is not mandatory when supply is being done from bonded warehouse located in SEZ to SEZ located within the state or o/s state. Officer can not bound to submit the said form

AI Summary

Client Disputes Need for Form I in SEZ-to-SEZ Transactions, Citing International Jurisdiction Exemption A client is importing goods stored in a customs bonded warehouse within a Special Economic Zone (SEZ) and supplying them to customers in SEZs or Export Oriented Units (EOUs) both within and outside the state. The authorities demand Form I for supplies to SEZs in other states, but the client argues that since transactions occur between SEZs, they are deemed international and outside Indian jurisdiction. An expert suggests complying with the authority's request to maintain good relations, while another notes Form I is not mandatory for such transactions. The client seeks advice on responding and relevant case laws.