Sale of a product to SEZ unit without excise invoice

[GANESH B]

An excise dealer (also trades without passing cenvat) can purchase a product by paying excise duty from a manufacturer. Can he sell the product to a SEZ customer without issuing a excise invoice? (issues only commercial invoice without mentioning excise). And the customer also requested to issue the product by sealing (as it is from manufacturer) with unique identity (invoice/delivery challan/note) and delivers the product at the customer premises(SEZ). Is it possible to do like that or not? Possible reasons/workouts/comments please.

[Surender Gupta]

As I understand from your query, SEZ customer of the dealer requires the material to be dispatched directory from the source i.e. manufacturer. The proposition is allowed as: The manufacturer would issue an invoice showing the SEZ unit as consignee and dealer as buyer. Dealer would issue a commercial invoice with reference to excise invoice of the manufacturer. Now under excise, there are two options, to removal the goods without payment of duty under bond / LUT or under claim of rebate. Normal export procedure i.e A.R.E.1 / A.R.E.2 form procedure would be followed if the benefit under central excise to be availed.

AI Summary

Supply to SEZ units: use manufacturer excise invoice to consignee with dealer commercial invoice; duty-free removal under bond or rebate. The manufacturer should issue an excise invoice naming the SEZ unit as consignee and the dealer as buyer; the dealer may issue a commercial invoice referencing the manufacturer's excise invoice and the goods' unique identity. Removals to the SEZ can be made without payment of duty under bond or Letter of Undertaking or under a rebate claim, with applicable export documentation and ARE form procedures completed to secure central excise benefits.