Drawback benefits for DTA supplies to SEZ units, Other Topics

[Swagath S]

Dear Sir,

Rule 24 of SEZ Rules provides for drawback benefits to supplies by DTA unit to SEZ units.

Further, Rule 30 of SEZ Rules, provides for procedures for supplies from DTA unit to SEZ unit which also prescribes that the payment for such supply shall be received from foreign currency account.

As per the above, can drawback be claimed even though the payment from the SEZ unit is received in INR. ?

Whether it can be argued that requirement of payment in foreign currency is procedural in nature and is condonable.??

Thank you

Regards

Swagath S

Posts / Replies

[YAGAY andSUN]

No it is not a procedural in nature but it is a statutorily mandatory requirement to get the remittance in foreign currency if goods are being supplied from DTA to SEZ for seeking export benefits and incentives.