Excemption of Excise, Octroi, for SEZ units

[deepak karkera]

i want to know, whether sez units have to pay excise, octroi if the machine purchased from DTA Units. please inform me Thanks

AI Summary

SEZ Units Exempt from Excise on DTA Machine Purchases; Octroi Requires 'N Form' per Circular No. 29/2006-Cus. A query was raised regarding whether Special Economic Zone (SEZ) units must pay excise and octroi on machines purchased from Domestic Tariff Area (DTA) units. The response clarified that SEZs are considered foreign territories within India, and exports to SEZs are treated as physical exports, exempt from all duties, including excise. For octroi exemption, it is necessary to file an 'N Form' and ensure it is closed within the required timeframe. The response referenced Circular No. 29/2006-Cus., which outlines the procedures for DTA procurement and clearance.