SEZ ENDORSEMENTS FROM SPECIFIED OFFICER

[Lakahman Gollapalli]

My client is Supplying Goods to SEZ Unit and he wants claim Refund of Unutilized ITC. But, the officer rejected the Claim by mentioning reason that, SEZ Endorsements of Invoices by Specified officer not submitted. How to get those documents from SEZ. is there any separate procedure and Format for that purpose. Guide me in this regard. Who is the refund processing officer as we dont know who is processing the refund. One of my friend said, if the refund is more than 10 lac it will go to higher authorities. If the refund is below Ten Lakh it will go to other authorities. is it Correct ?

[Alkesh Jani]

Shri

With regards to query, and definition of specified officer given at Rule 2 (zd) of SEZ Rules, 2006 is given below:-

“(zd) “Specified Officer” in relation to a Special Economic Zone means Joint or Deputy or Assistant Commissioner of Customs for the time being posted in the Special Economic Zone;”

The supplier of goods and or services are required to get the Invoice endorsed by him which is in conformity that the goods are received in full by the SEZ Unit is for authorised operation of the SEZ Unit.

Generally, the SEZ Unit gets the Invoice endorsed by the specified officer, in either case, supplier may also get the Invoices issued by him, endorsed from the specified officer.

Needless to say, that refund may be rejected if such endorsed Invoices are not filed along with the refund claim.

When refund claim is required to be filed online claimant is not concerned, as the claim filed with reach to the appropriate authority.

Thanks

[Lakahman Gollapalli]

Thanks for your reply Sir ... We have invoices digitally signed by Authorized officer. One of my friend said w.e.f 05.07.2022, invoices endorsed by AO is enough to get refund. Before 05.07.2022 , invoices should be endorsed by Specified Officer. Is it correct?

[Alkesh Jani]

Shri

To clear your doubt, I find it necessary to reproduce the relevant portion of the provision

The Explanation for sub-rule (1) of Section 54 is also given below :-

“Explanation .—For the purposes of this sub-rule, ― “specified officer” means a “specified officer” or an “authorised officer” as defined under rule 2 of the Special Economic Zone Rules, 2006.]

The definition given at Rule 2 (c) of SEZ Rules is also reproduce below

(c) “Authorised Officer” means an Inspector or Preventive Officer or Appraiser or Superintendent of Customs posted in the Special economic Zone and authorized by the Specified Officer to discharge any of his functions under these rules;”

From above, Invoice can be endorsed by either “specified officer” or Authorised Officer”. The Authorised Officer is an officer authorised by the specified officer, means authorised officer is exercising the powers of specified officer in accordance with the law. The endorsement of Invoices is important, either digitally signed or manually, I am of the view that the officer scrutinising the refund claim cannot reject the claim for such reasons.

Thanks

AI Summary

Client's ITC Refund Denied Due to Missing SEZ Endorsements; Authorized Officer Endorsements Valid Post-July 5, 2022 A client supplying goods to a Special Economic Zone (SEZ) unit seeks a refund of unutilized Input Tax Credit (ITC), but the claim was rejected due to missing SEZ endorsements on invoices by a specified officer. The specified officer, as per SEZ Rules, 2006, is a customs official in the SEZ. Invoices must be endorsed by either a specified or authorized officer to validate receipt of goods for SEZ operations. From July 5, 2022, invoices endorsed by an authorized officer are sufficient for refunds. The refund process varies based on the claim amount, with higher amounts requiring higher authority approval.