Exemption under Section 5A of Central Excise Act, 1944 to SEZs - Omission to omit reference to SEZ in Sec 5A is legislative oversight - HC
INITIALLY, duty leviable on goods cleared from SEZs into DTA was excise duty as per the proviso to Section 3 of the Central Excise Act, 1944. The quantum of duty is the aggregate duties of Customs leviable on like goods imported. But with a separate SEZ Act coming into effect, all this has changed and the reference to SEZ from levy of excise duty under Section 3 of the Central Excise Act was omitted. But they continued the reference to SEZs in Section 5A of the Central Excise Act. A SEZ unit claimed exemption from CVD in respect of goods cleared in DTA, based on a Central Excise exemption notification, but the Specified officer denied it as SEZs are excluded from Section 5A. The High Court held the omission to omit reference to SEZ in Sec 5A is only a legislative oversight and quashed the order.