Raw material sold to SEZ unit

This query is : Resolved

CA.SUBRAT KUMAR SAHOO (Querist)
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15 February 2010 Hi,

Whether Raw materials purchased for manufacture through Advance license and sold as it is to SEZ unit will be treated as Deemed Export?
Whether ED ll be Chargable on the same?

Pls answer with specific provision in the law.

Swanand

Swanand (Expert)
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02 March 2010 As per SEZ Act, all supplies to SEZ from Domestic Area (DTA) is considered as exports hence it is eligible to get Export benefit as well as there is no excise chargeble on it.

However , excise department will not allow to clear goods without any process under Advance License neither to SEZ or Any other party.

visit www.sez-india.net for SEZ Rules.