Export Duty and SEZ – Commerce Concedes
If there is a conflict between the Commerce Department and the Revenue Department, who wins? No prizes for the correct answer, as we all know that it is always REVENUE.
The confusion regarding the requirement of paying export duty on steel products cleared to SEZ, ended with the Commerce Ministry failing to convince the Revenue and conceding that duty has to be paid.
The Commerce Ministry in a letter addressed to all the Development Commissioners of SEZs, with a copy marked to the Member (Customs) in the CBEC, has requested the Development Commissioners to allow entry of those goods into the SEZ only after the export duty is paid.
And remember we had mentioned about a Commissioner of Central Excise, who had given a clarification that no export duty is payable on the goods cleared to the SEZ. We understand that he has withdrawn his clarification. If Revenue can browbeat the Commerce Ministry, what is a Commissioner under it?
But at least now Revenue should clarify as to who should pay this duty, when and where? They should post Customs officers outside each SEZ to collect the export duty!
Now the position is: Revenue had no doubts all through that export duty was payable, though they were and are not clear when and where; whatever little doubts, the Commerce Ministry had are of no consequence as Commerce has also conceded that duty has to be paid.
In 1633, a Pope found Galileo guilty of heresy and he was forced to kneel down and confess that the Earth did not move, but as he got up, he muttered, "But it does"
We have a Netizen who says that still the Revenue and Commerce Departments are wrong and export duty is not payable. See our Netizen’s Editorial today.
F. No. (pt) of the Department of Commerce (SEZ Section) Dated: June 30, 2008