Mechanism of claiming refund for goods supplied in sez

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This query is : Resolved

CA Milap Mehta (Querist)

03 February 2012 There is an second stage dealer who has purchased goods from first stage dealer on paying duty of excise. Then, such dealer is supplying goods to the undertaking in SEZ without levying any duty of excise or VAT.

Whether duty paid by the second stage dealer at the time of purchase is refundable and if yes, what procedures need to be followed?..

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

03 February 2012 Supplies from DTA to SEZ shall be exempt from payment of any Central Excise duty under Rule 19 of Central Excise Rules, 2002. Similarly, such supplies shall be eligible for claim of rebate under Rule 18 of Central Excise Rules, 2002 subject to the fulfillment of conditions laid there

No CST if sale to SEZ - Sections 8(6), 8(7) and 8(8) have been incorporated to provide that inter state sale made to a unit in SEZ (Special Economic Zone) will be exempt from CST. The purchasing dealer has to submit a declaration in prescribed form. Consequential amendment is made by inserting section 13(1)(aa) to authorize Central Government to make rules to provide form and manner of furnishing declaration u/s 8(8). [CST Rule 12(10)(a) has have been subsequently amended on 16-1-2003. It is provided that SEZ unit will supply H form duly countersigned and certified by authority specified by Central Government authorizing establishment of unit in SEZ, - Development Commissioner is the authority to allow setting up of SEZ unit]

https://dateyvs.com/cst01.htm

Exemption from service tax under Chapter-V of the Finance Act, 1994 on taxable services provided to a Developer or Unit to carry on the authorized operations in a Special Economic Zone

except it you will be avail various incentive LINK IS:

https://www.caclubindia.com/share_files/comprative-incentive-among-sez-eou-and-general-unit--23721.asp

REGARDS,

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