Sez can avail the excise duty against shipping bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2015 Dear SIr,

We have a SEZ Unit and we are paying the Customs including excise dut amoutn for un lifted qty i.e 1 MT, which is not utilized for us to close the bond at customs.

As per said information we can't claim the customs amount and can we claim the excise duty amount.

Pl claity for the same. If you hve any notification number, pl provide the same.

ANIL JANGID

ANIL JANGID (Expert)
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14 March 2015 YES YOU CAN CLAIM EXCISE DUTY AMOUNT

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2015 Can you expplain in detailed and notification number

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2015 Sir

Can you update the same

Srikanth

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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25 July 2025 Certainly. Let's clarify your question and provide a full legal and procedural explanation, along with the relevant notification.

✅ Your Query Simplified:
You are a SEZ unit, and you:

Imported or procured goods under bond without paying duty.

A portion of the goods (1 MT) remained unutilized and were not cleared/exported, hence customs is asking for duty payment to close the bond.

You're asking:

Can you claim back the Excise Duty (if paid), even though Customs Duty cannot be claimed?

📌 Clarification:
In general:

Customs Duty paid on unutilized quantity is not refundable, unless goods are returned, destroyed, or covered by specific provisions.

However, Excise Duty (Central Excise, now mostly GST-subsumed, but still relevant for certain goods) may be eligible for rebate or refund, if the conditions are satisfied.

✅ Yes, you can claim Excise Duty refund, subject to conditions.
🔍 Legal Basis:
1. Rule 18 of Central Excise Rules, 2002
Allows for rebate of duty paid on goods exported.

However, your situation is not direct export — it's about closing bond for unutilized goods.

2. Rule 19 of Central Excise Rules, 2002 + Notification No. 42/2001-CE(NT) dated 26.06.2001
This rule provides for:

Procurement of excisable goods without payment of duty under bond for export or supply to SEZ.

If goods are not used/exported, duty becomes payable.

If duty is paid subsequently, rebate may be claimed if the goods are later exported or destroyed under supervision.

✅ When Can You Claim Excise Duty Refund/Rebate?
You can claim Excise Duty refund if:

The goods were:

Meant for SEZ use/export under bond.

Not used, and you had to pay duty to close the bond.

You later:

Exported the goods, or

Destroyed the goods under Central Excise supervision.

Then, you can claim refund under Rule 18 (if exported) or via re-credit in case of duty-paid returned goods (under Rule 21/Rule 16).

❌ You Cannot Claim Refund If:
The goods were never exported or destroyed properly.

No proof of actual duty-paid export is available.

Customs duties were paid — these are non-refundable unless under specific remission or re-export rules.

📄 Important Notifications:
Notification No. 42/2001-CE (NT), dated 26.06.2001
[Rebate of duty on excisable goods exported]

Rule 18 of the Central Excise Rules, 2002
[Rebate of duty on exported goods]

Circular No. 294/10/97-CX dated 30.01.1997
[Clarifies refund/rebate procedure in case of non-export or destruction]

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