Clarification regarding amendment in Special Economic Zone Rules, 2006 in Rule 47, after sub-rule (4) dated 05.08.2016

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....d to the CBEC Circular No. 11/2017-Customs, dated 31st March , 2017 [F. No. DGEP/SEZ/51/2009 Part-II], which clarifies the amendments made in the Special Economic Zone Rules, 2006 by way of inserting a new Rule 47 (5) brought vide Department of Commerce (DoC) Notification No. GSR 772(E) dated 05.08.2016 wherein functional operations like Refund, Demand, Adjudication, Review and Appeal are to be made by jurisdictional Customs and Central Excise authorities in accordance with the relevant provisions contained in the Customs Act, 1962 & Central Excise Act, 1994 and the Finance Act, 1994. 2. Doubts have been raised regarding operationalization of these functions, appropriate authority and time limitation in respect of these functional operat....

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....nctional Operation Standard Operating Procedure (SOP) 1 Refund i. The SEZ unit/ Developer shall file the refund application addressed to the Deputy Commissioner/  Assistant Commissioner of policy or technical, as it may be called, in the Office of Jurisdictional Commissioner of Customs, Central Excise, Service Tax or GST as the case may be. ii. If required, DC/AC (Policy/ Technical or as they may be called in the GST regime) would seek comments from the office of the concerned Development Commissioner on admissibility, limitation including aspects of unjust enrichment of this refund claim under Customs law. iii. The office of the Development Commissioner must provide comments within a maximum period of 2 weeks from th....

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....cise, Service Tax or GST laws and procedure prescribed under (i) & (ii) above. iv. For the purpose of SEZ, falling in the jurisdiction of Mumbai-Zone II JNCH, DC/AC SEZ (Headquarter) NS-General, JNCH is designated as DC/AC (Policy/ Technical) in this regard. 3 Adjudication All pending demands shall be adjudicated by the appropriate authority as prescribed under the Customs, Central Excise, Service Tax or GST laws and the rules made there under including demands issued prior to 05.08.2016 because the act of adjudication is prospective in nature. For the purpose of SEZ, falling in the jurisdiction of Mumbai-Zone II JNCH, DC/AC SEZ (Headquarter) NS- General, JNCH is designated as DC/AC (Policy/ Technical) in this regard. 4 ....

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....refund claims are received by jurisdictional Customs, Central Excise or Service Tax or Central GST field formations would be relevant for our officers for the purpose of interest rather than the period for which it was lying with SEZ authorities, for which DOC will take necessary action as deem fit by them, if need arises. 3.5 The second issue relates to appropriate authority to demand duty in case a unit opts out of the SEZ scheme. As per Rule 74 of SEZ Rules, 2006, such exit shall be subjected to payment of applicable duties on the imported or indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock. The proviso to the said Rule states that if the unit has not achieved positive net fore....