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

Excise Dealer Can Sell to SEZ Customer with Commercial Invoice; Follow Export Procedures for Duty-Free Removal An excise dealer inquired about selling a product to a Special Economic Zone (SEZ) customer without issuing an excise invoice, instead providing only a commercial invoice. The SEZ customer requested the product be sealed and delivered directly from the manufacturer. The response clarified that this is permissible if the manufacturer issues an invoice listing the SEZ unit as the consignee and the dealer as the buyer. The dealer can then issue a commercial invoice referencing the manufacturer's excise invoice. The goods can be removed without duty under bond/LUT or with a rebate claim, following standard export procedures.