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Procedural formalities for removing excisable goods to sez

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

09 November 2012

One of my client being manufacturer engaged in manufacturing of Hydraulic Machines covered under Excise Law also.He wants to dispatch such Exciseable Goods from Factory Premises to SEZ units either within the same State or Inter State which are exempted both from VAT/Excise levy.Now query is what is the main procedural formalities from the Excise point of view to enable our client to dispatch the Goods to SEZ units. Please reply urgently. Thanks in Advance.

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7 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 09 November 2012

SEZ will furnish the CT-3 to the factory of clearance, and goods will be despatched under ARE-1 cover, and submit the despatch documents ( 3rd and 4th copies of ARE-1) within 24 hrs of dispactch to Range superintendent,

within 45 days of such clearance, the factory will furnish the Original and duplicate copies of ARE-1(duly sealed and signed by SEZ officer) to the range.( in case of goods cleared under bond/LUT of the factory)

balance formalities will be as per notification no 42/2001 CE(NT)

https://www.cbec.gov.in/excise/cx-act/notfns-2k1/cent42c-2k1.htm

CA Sanjay Baheti (PROPRIETOR) (1155 Points)
Replied 09 November 2012

Sir, Thanks for reply.But still there is confusion as to ARE-1.

Please clarify me the following as:-

i) whether ARE-1 is to be prepared by manufacturer i.e. from where goods to be removed in 4 copies.

ii) whether the same are to be submitted to concerned range Superindendent of Manufacturer.

iii) whether the original & duplicate of ARE-1 are again to be obtained from Exporter i.e. SEZ unit with Duly

sealed and Signed by the SEZ concerned officer for onwards submission to range Superindendent of manufacturer.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 09 November 2012

i) ARE-1 is to be manufactured by manufacturer

ii) 3rd and 4th copy of ARE-1 is to be submitted to R/O of factory within 24 hrs ( under self sealing procedure) / 3rd and 4th copy will be retained by the R/O ( under the physical inspection and clearance by department)

iii) 1st and 2nd copies will be submitted to the authority from where the CT-1/CT-1/LUT has been issued or where the bond is executed. it may be SEZ commissionarate in case of CT-3 by SEZ or the commissionarate of manufacturer if LUT of manufacturer is used for clearance.

paresh (Accountant) (58 Points)
Replied 10 November 2012

Dear Mr.Sanjay,

clearnce procedure to SEZ..

SEZ clearnace is not deemed export, SEZ is import the materail so they have not provide any bond, like CT-3 or CT-. (CT-3 used by only 100% EOU unit not SEZ, and CT-1 used by merchant expoter).. you have clearnce in ARE-1 only either by REBATE claim or letter of undertaking which you have obtain by your excise department.

for rebate claim follow the below procedure..

1.Prepared ARE-1 in 5 Copies.

2.Debited duty in Cenvat a/c and resective Debit entry no mention in ARE-1 at back side.

3 Same debit Entry no mentnion in your commercial or Excise invoice.

4. 1st and 2nd copy of ARE-1 and Transporter copy of Excise invoice sent to SEZ along with material.
5. After spitulated time period ARE-1 and Transporter copy must be receive back from SEZ with Stamp of Custom authority and SEZ with "Full Consignment Received".

6 After receiveing of above document you have put your Rebate claim at your Excise divi.

For more details or procedure reffer Circular No 29/2006-Custom

and Rebate claim under Rule 18 of Central Excise Rules 2002.

I hope that it will be fuilfill your query.

Sandeep Bidikar (Manager-Accounts & Purchase) (21 Points)
Replied 26 March 2014

Dear Sir/Madam,

We are going to supply excisable goods to SEZ unit in next month. The SEZ unit has provided us the Letter of Approval granted by Asst. Development Commissioner(SEZ) and asked us to dispatch the goods without charges Excise duty and Central Sales Tax.

Please advice me what is the next procedure I should follow.

Regards,

Sandeep Bidikar