Supply of goods from EOU to SEZ

[Dashrath Walkoli]

Sir,

We are a EOU unit and few supplies of goods are made to SEZ. Whether reversal of duties of Custom leviable under First Schedule to the Customs Tariff Act, 1975 availed as exemption on the inputs utilized for the purpose of manufacturing of such goods, is required to be done ?.

AI Summary

Deemed exports to SEZ: customs duty exemptions on inputs need not be reversed where transfers are for authorized operations.
Supplies from an EOU to an SEZ are treated as deemed exports and, where transfers are for authorized SEZ operations with proper export documentation and receipt endorsement, exemptions under the First Schedule to the Customs Tariff Act availed on inputs need not be reversed; reversal is required only if supplies are not for authorized operations, documentation is lacking, or goods are diverted to the domestic tariff area.