DTA

Tax body clarifies that SEZ goods cleared to DTA and re-exported will qualify as imports for duty drawback, aiming to ensure uniformity and reduce disputes

The government has clarified that when goods are supplied from SEZ units to the domestic market after paying applicable duties and later re-exported, they will be treated as imported goods for the purposes of disbursement of duty drawback. The instruction clarifies that goods supplied by an SEZ unit to the Domestic Tariff Area (DTA) after payment of customs duties will be treated as imported goods if later re-exported. According to an instruction of the Central Board of Indirect Taxes and Customs (CBIC) to customs authorities, it has been observed by the audit that divergent practices are being followed in the processing of duty drawback claims filed by DTA units under Customs law. It has been stated that some field formations have not treated clearance from SEZ to DTA as import and have denied the disbursement of drawback under Section 74 of the Customs Act, 1962. "...it is hereby clarified that in cases where goods are cleared into DTA from SEZ unit on payment of applicable duti

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