Export to SEZ - Commerce Ministry's clarification - It's still not export!

The relevance of definition of export for the purpose of sez in relation to supplies to sez cannot be ruled out. For what purpose the definition was created i.e. whether to give export incentives or otherwise cannot be looked into for interpretation of law as it would tentamount to looking into the intention of legislature. Therefore, no view is free from doubt and absolute. It will be of interest to note as to what controversy was addressed,if any by the two Ministeries and whether the decision was approached from legal angle or on administrative considerations.

somesharora somesharora 10/07/2008

 

This is Sivakumar from S3 Solutions Pvt Ltd.

This is yet another instance of an one-up man ship attitude by the Finance Ministry. The notification issued by the Commerce Ministry does not have a legal status and needs to be challenged. I am not able to understand the whole concept of first making SEZs tax free havens and then, to introduce taxes thro' Notifications.

The purpose of levy of export duty on steel exports is to discourage steel exports which, from the Govt's point of view, is resulting in a demand-supply mismatch for the domestic industry. To extend this logic for steel supplies to SEZs/SEZ Developers, who, irrespective of the jargon, are essentially building projects located inside India which are aimed at increasing India's competitiveness, is plain stupidity.

The law of the land has to be have a common sense approach.

SUBRAMANI SIVAKUMAR 10/07/2008