No Export Duty on clearances to SEZ, Export Duty can be levied only under Customs Act, not SEZ Act: High Court
THE issue is now settled - at least at the High Court level.
In a landmark judgement the Gujarat High Court has with high erudition and lucidity explained the concepts and demolished every theory advanced by Revenue. Wonder why the highly intelligent Revenue officers can't think like this?
The moot question for consideration is as to whether the levy of export duty on goods supplied from the Domestic Tariff Area to the Special Economic Zone is justified under law. Dealing with this question, three important aspects are to be borne in mind :-
1. Whether export duty can be imposed under the provisions of the Customs Act, 1962?
2. Whether Export Duty can be levied under the provisions of the Special Economic Zones Act, 2005?
3. Whether export duty can be imposed under the Customs Act, 1962 by incorporating the definition of the term 'Export' under the SEZ Act, 2005 into the Customs Act, 1962?
The High Court answered all the above questions in the negative.
The High Court's views were exactly as propagated by TIOL in our various editorials, articles, DDT and the writ filed by me in the AP High Court.
We are happy to bring you this landmark judgement today. This, by no means, is the end of the story – the Government will take the matter to the Supreme Court.
Please see
1. Export to SEZ - Commerce Ministry's clarification - It's still not export!
2. Is Export duty payable by DTA units for supplies to SEZs? If at all payable who is liable to pay?
3. Export duty on SEZ clearances: Dear FM, Please take a decision quickly
4.
See our Breaking News for the High Court Order