SEZ Developer - Excise/Customs duty benefit

[DINESH MORE]

Can SEZ Developer will get Excise/ Customs duty benefit on material required for Authorised operation but installation/consumption/uses will be out side SEZ. e.g to get power connective if developer has to get power from nearest power station to SEZ, whatever cable laid down outside SEZ on that cables he will get Excise/customs duty benefit or not.

[Guest]

No, benefits are allowed for the operations inside the SEZ area. Once the benefit is exteded to outside SEZ area for the reasons mentioned in the query, it would vitiate the scope and purpose of the whole scheme.

AI Summary

SEZ duty benefit: concessions apply only to materials used inside the zone; materials used outside are ineligible. Duty benefits for SEZ developers are confined to inputs and operations inside the SEZ area. Materials installed, consumed, or used outside the SEZ (for example power cables laid outside the zone) do not qualify for excise or customs duty concessions because extending benefits beyond the SEZ would vitiate the scheme's territorial scope and purpose.