TaxTMI 
TaxTMI 
Jurisdiction of Customs laws over SEZ (Special Economic Zone) units.
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....urisdiction of Customs laws over SEZ (Special Economic Zone) units.<br>By: - YAGAY andSUN<br>Customs - Import - Export - SEZ<br>Dated:- 5-6-2025<br>The jurisdiction of Customs laws over SEZ (Special Economic Zone) units in India involves a complex interplay between the Customs Act, 1962, and the SEZ Act, 2005, along with the rules and notifications issued under these legislations. Here's a structu....
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....red breakdown: ⚖️ 1. Legal Framework A. SEZ Act, 2005 * The SEZ Act, 2005 is a self-contained code governing the establishment, development, and management of SEZs in India. * SEZ units are considered to be located outside the customs territory of India for the purpose of undertaking authorized operations. * Goods and services imported or procured by SEZ units for authorized o....
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....perations are exempted from customs duties, subject to conditions. B. Customs Act, 1962 * Applies to import/export from/to SEZ only in specific cases, particularly: * When goods move from SEZ to DTA (Domestic Tariff Area). * When there is any non-compliance or violation by SEZ units related to import/export procedures. 🏛️ 2. Jurisdiction: Who Regulates What? Area Governing....
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.... Law Jurisdiction/Authority Import of goods into SEZ SEZ Act, 2005 (Sections 26, 30) Development Commissioner & Specified Officer Procurement of goods from DTA into SEZ SEZ Act & Rules Treated as exports under Customs Act (Sec. 2(18)); regulated by SEZ Rules Movement of goods from SEZ to DTA Customs Act, 1962 (Sections 30, 68, 69) Customs Department (Duty payable as if imported into Indi....
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....a) Non-compliance with import/export regulations Customs Act (Penalties, Confiscation, etc.) Customs Department Overall SEZ operations and monitoring SEZ Act and SEZ Rules Development Commissioner (DC) 🔄 3. Customs Duties and Exemptions Under Section 26 of the SEZ Act, SEZ units are eligible for: * Exemption from customs duty on goods and services imported into the SEZ. * Exemp....
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....tion from central excise duties, service tax, and other indirect taxes (though post-GST, some of these have been subsumed). However: * When goods move from SEZ to DTA, they are treated as imports into India and attract customs duty as per the Customs Tariff Act. * SEZ to DTA sales require payment of duties and compliance with Customs regulations. ⚠️ 4. Enforcement & Penalty Juri....
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....sdiction * If SEZ units misuse exemptions or violate any condition under the SEZ or Customs laws, they may be: * Subject to investigation by Customs authorities. * Penalized under Customs Act, 1962 (Sections 111, 112, 114, etc.). * SEZ Act does not override Customs Act in cases involving revenue evasion or fraud. 🧾 5. Case Law and Judicial Interpretations Several courts have clar....
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....ified: * Customs authorities have jurisdiction when there is duty implication, especially in SEZ to DTA movement. * The SEZ Act is special law and generally overrides the Customs Act within the SEZ for authorized operations. 🔹 Case Example: CC v. GMR Aerospace Engineering Ltd (CESTAT) - Held that Customs Act applies to SEZ unit when goods are cleared into DTA. ✅ Summary Topic ....
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.... Governed By SEZ operations (imports, exports within SEZ) SEZ Act, 2005 & Rules Movement of goods from SEZ to DTA Customs Act, 1962 Violations/penalties related to duty/tax evasion Customs Act, 1962 Administrative jurisdiction over SEZ unit Development Commissioner, SEZ <br> Scholarly articles for knowledge sharing by authors, experts, professionals ....