Excemption of Excise, Octroi, for SEZ units

[Asked by Guest]

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

[Snehal Kulkarni]

Special Economical Zones although located in India, are also regarded as Foreign Territory and any export to SEZ units is treated as Physical Export for the purposes of benefits

Please go through the Circular  No. 29/2006-Cus., dated 27-12-2006 where in the details procedure is given for DTA procurement and clearance thereto.

The Supplies made by the DTA unit are treated as Physical Export and are free from all type of duties.

For Octroi exemption, you have to file "N Form" wherein it is to be closed within the stipulated time.

AI Summary

Physical export treatment for supplies to SEZ units: DTA sales exempt from excise and require N Form for octroi relief.
SEZs are regarded as foreign territory and supplies from DTA units to SEZ units are treated as Physical Export and exempt from excise and other duties; DTA procurement and clearance procedures follow Circular No. 29/2006-Cus., and octroi exemption requires filing and timely closure of the N Form.