supply to SEZ without payment of duty, Central Excise

[Ramesh Patel]

We are registered under excise. received order from SEZ developer for two products say A and B. We are mfg A, and same is cleared under UT - 1. without excise duty. Weather we can buy "B" from other excise registered mfg without duty and sell it to SEZ developer without duty. If yes, pls give rule under which this can be done and procedure for the same

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[GOKARNESAN.S SUBRAMANIAN]

Dear Sri Ramesh Patel. You can procure Product B from other manufacturer without payment of duty for onward supply to SEZ Developer in the capacity of 'merchant exporter'. You have to execute a Bond before your divisional assistant commissioner and obtain CT-1 certificate in terms of Rule 19 of CE Rules read with procedure under Notification No. 42/2001 CE NT dated 26.6.2001 as amended. Since supplies to SEZ Developer is 'export' in terms of SEZ Act read with SEZ Rules and Board circular. advised accordingly. S. Gokarnesan, advocate, Chennai