DEPB benefits available to SEZ units even before 11.5.2004 – Board clarifies
BOARD had Vide Circular No. 25/2003-Customs dated 1st April, 2003, clarified that “henceforth, supplies made by DTA units to units in SEZ would be entitled to DEPB benefits”. However the SEZ scheme came into effect only on 11.5.2005. The Board had, therefore, issued a Circular (Circular No. 11/2004-Cus dated 5.2.2004) clarifying that till the operation of SEZ, the benefit of DEPB Scheme does not become legally available in respect of supplies made by DTA units to SEZ units. Then what happens to the supplies made during the period 1.4.2003 to 11.5.2004? Board has now clarified after obtaining the advice of the Law Ministry that the benefit of DEPB Scheme would be admissible in respect of supply of goods from units in DTA to units in SEZ during the period from 01.04.2003 to 11.5.2004. So the Circular No. 11/2004- Cus dated 5.2.2004 has been withdrawn. Thank God ands Board! A thorny issue is settled – hopefully.
CIRCULAR NO. , Dated : April 6, 2005