Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise and Customs
Directorate General of Export Promotion
(Hotel Janpath, 1st Floor, New Delhi-110001)
Circular No. 06 /2010
New Delhi, the 19th Mar., 2010
To
All Chief Commissioners of Customs
All Chief Commissioners of Central Excise
All Chief Commissioners of Customs & Central Excise
Sub: Rebate under Rule 18 on clearances made to SEZs. reg.
A few representations have been received from various field formations as well
as from various units on the issue of admissibility of rebate on supply of goods
by DTA units to SEZ.
- A view has been put forth that rebate under Rule 18 of the central Excise
Rules, 2002 read with Notification 19/2004- CE (NT) dated 06.09.2004 is
admissible only when the goods are exported out of India and not when supplies
are made to SEZ.
- The matter has been examined. The circular No. 29/2006- Cus dated 27.12.2006
was issued after considering all the relevant points and it was clarified that
rebate under Rule 18 is admissible when the supplies are made from DTA to SEZ.
The Circular also lays down the procedure and the documentation for effecting
supply of goods from DTA to SEZ, by modifying the procedure for normal export.
Clearance of duty free material for authorised operation in the SEZ is
admissible under Section 26 of the SEZ Act, 2005 and procedure under Rule 18 or
Rule 19 of the Central Excise Rules is followed to give effect to this provision
of the SEZ Act, as envisaged under Rule 30 of the SEZ Rules, 2006.
- Therefore, it is viewed that the settled position that rebate under Rule 18
of the Central Excise Rules, 2002 is admissible for supplies made from DTA to
SEZ does not warrant any change even if Rule 18 does not mention such supplies
in clear terms. The field formations are required to follow the circular no.
29/2006 accordingly.
Yours faithfully,
(Praveen Mahajan)
Director General
F.NO. DGEP/SEZ/13/2009