No Export Duty on clearances to SEZ; Export Duty can be levied only under Customs Act, not SEZ Act; Definition under SEZ Act cannot be imported into Customs Act to levy duty; SEZ is not outside India: Gujarat High Court

In light of the judgment govt. should rethink about the special privilege given to SEZs by exemption from export duty in terms of sub-section (b) of Section 26 of the SEZ Act, 2005. As this would discriminatory to the DTA exporters who suffered from export duty on steel during May, 2008 to Oct., 2008, whereas SEZ unit had escaped from payment of any export duty on steel exported out of INDIA by this section. Though, both SEZs and DTA units are earning foreign exchange for the country. The Govt. during May, 2008 to Oct., 2008 try to restrain the export of Steel to enhance the availability of Steel into the domestic market by way of imposing export duty on it, but SEZs had availed special privilege under Section 26 (b) of the SEZ Act, 2005 and ultimately Steel gone out of India without any restrain. SEZ Act needs to amend for this anomaly.

The intelligent revenue officers just want to raise this anomaly.

prakash budania 10/12/2009

 

The so called intelligent officers instead of booking cases left right and centre, should have brought this anamoly to the notice of the Govt to ament the SEZ Act accordingly.

tax netizen 10/12/2009