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 entitlement for supplies to SEZ developers treated as physical export, but retrospective claims carry litigation risk.
Cenvat credit is available where domestic suppliers deliver inputs to a Special Economic Zone developer or unit against the ARE form, such supplies being treated as physical export; suppliers can therefore avail Cenvat credit on inputs used for such supplies. However, claiming credit for periods prior to the end of 2008 has been litigated, so retrospective claims carry litigation risk.