Refund of Cenvat Credit

[Soumya Sinha]

Can Cenvat credit be available on input used to supply to SEZ developer in Year 2008

[Snehal Kulkarni]

Rule 30 of SEZ rules 2006 allows the SEZ unit and SEZ developer to procure the goods domestically.

The domestic supplier have to supply the goods against ARE-1 being these supplies are treated as PHYSICAL Export.

You can avail the CENVAT credit on inputs used to supply to SEZ developer.

[Snehal Kulkarni]

It is litigous issue if you are going to avail the Cenvat Credit prior to 31-12-2008.

Please go through the following case law

2010 -TMI - 78965 - CESTAT, NEW DELHI Other Citation: 2010 (256) E.L.T. 85 (Tri. - Del.)

 

AI Summary

Cenvat Credit on Inputs for SEZ Supplies Clarified Under Rule 30; Pre-December 31, 2008 Claims May Be Contentious. A query was raised regarding the availability of Cenvat credit on inputs used for supplies to a Special Economic Zone (SEZ) developer in 2008. It was clarified that under Rule 30 of the SEZ Rules 2006, SEZ units and developers can procure goods domestically, and domestic suppliers must treat these supplies as physical exports, allowing Cenvat credit on inputs. However, it was noted that claiming Cenvat credit before December 31, 2008, could be contentious, referencing a specific case law for further guidance.