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Dealer who want to supply material to sez vide are1

31 January 2013

Hello Experts,

We are dealers registered for Trading Excise.

We can transfer Excise modvat to our customers for Rebate.

WHat is the Procedure to supply the material to an SEZ without duty from the manufacturer directly, whereas the billing and payment is done via me.

Thanks in advance

Regards Roopesh.

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4 Replies

C.V.R.SARMA (SERVICE) (90 Points)
Replied 02 February 2013

You have to get the PO from the SEZ Unit such that material is to be supplied by the manufacturing unit and billing is to be done on you. It is an accepted practice in the central excise. Let your manufacturer execute an LUT with the jurisdictional AC and clear the goods to the SEZ without payment of duty. Consignee name in the invoice should be mentioned as " XXX ( Manufacturer's name) on the A/C of your name and address. In the ARE-1, manufacturer's name and address could be mentioned.

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Roopesh Vakharia (a) (27 Points)
Replied 04 February 2013

Thank you for the reply SIR. I need a more clear understanding on the same and require some more help.

Three parties to the above transaction.

SEZ CUSTOMER - DEALER -MANUFACTURER. (A-B-C)

A is situated outside maharashtra, B and C in Maharshtra.

TAX Implications.

IF The above transaction will be trated as SIT (Sale in Transit).

Hence Billing by C-B will be CST 2% against form 'C' , Instead of VAT. Need some clarity wether it will be 2% or Nil as supplied to SEZ.

Billing by B-A will be CST NIL as supplied to SEZ against Form 'I'

Also B will receive an E-1 form from C

I HOPE THE ABOVE IS CORRECT.

EXCIE Implications

A will issue ARE 1 to C

C will register LUT with jurisdiction office and issue goods directly to A

What is CT1?

Need more step wise detailed process for the same.

I hope you can help.

Thanks in advance.

Deepak (Officer) (22 Points)
Replied 17 December 2014

C will iassu ARE-1 to A after material reched to C , C will get endorsment from SEZ commissioner on ARE1 back along with "Duplicate for transporter" copy of Excise invoice and Form-I returnd to B and B will Return all documentsreceived form A to C for Proof of Export.

Deepak (Officer) (22 Points)
Replied 17 December 2014

Form CT1 is a document for marchant exporter obtain from Assistan Commissioner of Central excise for a Manufacturer purchase materila from another Manufacturer for Export against B-1 Bond.

thanks