Goods sold to sez without payment of duty without any bond

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Suvendu Laha (Querist)
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09 July 2012 Dear All,
Excise-able goods sold without payment of Duty and without execution of any Bond to SEZ, Now department has issued Show Cause Notice demanding Duty and canceling CCR on raw-material used. Plz guid me whether department is right??? What should we do to get relief???

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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10 July 2012 The facility of DTA sale is available to the SEZ units. Under the Scheme, finished goods including by-products and services and waste/scrap/remnants/rejects etc. can be sold in the DTA on payment of applicable duty and in accordance with the Export-Import Policy in force. However, where such finished goods (including rejects, waste and scrap materials) are not excisable, duty equal in amount to that leviable on the inputs imported/indigenously procured under the notifications and used for the purpose of manufacture of such finished goods, which would have been paid but for the exemption under the said notifications, is payable at the time of clearance of such finished goods. In case of service sector SEZ units, the rendering of services in DTA is allowed subject to the condition that the unit has achieved the positive NFE, cumulatively, as specified in the Policy. This would mean that service units will not be eligible for making DTA sale if the NFE is not positive cumulatively at any point of time. Further, if any of such services are taxable under provisions of Chapter V of Finance Act, 1994, then rendering of such services in DTA would require payment of service tax as per the provisions of Finance Act, 1994.

Suvendu Laha

Suvendu Laha (Querist)
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11 July 2012 But sir we want to get the benefits of deemed export( Goods sold to SEZ is consider as Deemed export/ Circular No 06/2010. As we neither execute any bond nor paid any duty, department denied to allow the benefits(Exemption of Duty and CCR on Input).

So sir right now what can I do???