TMI Blog2019 (11) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no mechanism under SEZ Rules for claiming rebate/refund on goods procured from the DTA. In the absence of any specific provision for exemption by way of refund in the SEZ Rules or under Central Excise Rules, the appellant is not entitled to refund of the duty - The assessee is not entitled to refund at all in the present case, both on account of lack of explicit provision for such refund as well as on the ground that the assessments were not challenged by the appellant. Appeal dismissed - decided against appellant. - Excise Appeal No. 30603 of 2018, 30513 of 2018, 30898 of 2018 - A/31018-31020/2019 - Dated:- 5-11-2019 - HON'BLE MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri Joseph Prabhakar, Advocate for the Appellant. Shri V.R. Pavan Kumar, Authorized Representative for the Respondents. ORDER PER: P.V. SUBBA RAO. 1. These three appeals are on the same issue and hence are being disposed of together. 2. Heard both sides and perused the records. The appellant M/s Adani Power Ltd, Gujarat are co-developers of Multi-Product Special Economic Zone in Guj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations. In their case, they have procured the goods on the strength of normal commercial invoice and the goods were cleared by their suppliers after paying appropriate duty. 4. Thereafter, they filed refund applications under section 11B of the Central Excise Act which were rejected by the authorities. Hence, these appeals. 5. Regarding the refund application not having been filed with the jurisdictional Central Excise Officer as per Rule 47(5) of SEZ Rules, he would submit that this Rule pertains to sales in DTA by the SEZ and it does not pertain to procurement of goods by the SEZ unit/developer. As per Rule 47(5), refund, demand adjudication, review and appeal, with regard to matters relating to authorized operations under SEZ Act, 2005, transactions and goods and services related thereto, shall be made by the jurisdictional Customs Central Excise authorities in accordance with the relevant provisions contained in the Customs Act, 1962, Central Excise Act, 1944 and the Finance Act, 19944 and the rules made there under or notifications issued there under. He would submit that this reference to the jurisdictional excise officer or customs officer h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided that if the goods arrive before a Bill of Export has been filed and assessed, the same shall be kept in an area designated for this purpose by the Specified Officer and shall be released to the Unit or Developer only after completion of the assessment of the Bill of Export. (4) A copy of the ARE-1 and/or copy of Bill of Export, as the case may be, with an endorsement by the authorized officer that goods have been admitted in full into the Special Economic Zone shall be forwarded to the Central Excise Officer having jurisdiction over the Domestic Tariff Area supplier within forty-five days failing which the Central Excise Officer shall raise demand of duty against the Domestic Tariff Area supplier. (5) Where a Bill of Export has been filed under a claim of drawback or Duty Entitlement Pass Book, the Unit or Developer shall claim the same from the Specified Officer and jurisdictional Development Commissioner respectively and in case the Unit or Developer does not intend to claim entitlement of drawback or Duty Entitlement Passbook Scheme, a disclaimer to this effect shall be given to the Domestic Tariff Area supplier for claiming s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd (2) above shall apply, mutatis mutandis, except that the goods shall be brought to the Special Economic Zone under the cover of an invoice and the ARE-1 shall not be required. (11) The Unit or Developer may also procure goods from Domestic Tariff Area without availing exemptions, drawbacks and concessions on the basis of invoice or transport documents, issued by the supplier: Provided that such invoices or transport documents shall be endorsed to the effect that no exemptions, drawbacks and concessions have been availed on the said supplies. (12) Procedure for procurement from warehouse shall be as under:- (a) where goods are to be procured from warehouse, a Unit or Developer shall file a Bill of Entry with the Specified Officer; (b) the Unit or Developer shall submit Bill of Entry assessed by the Authorized Officer to the Customs Officer in charge of the warehouse from where the Special Economic Zone Unit or Developer intends to procure the goods; (c) the Customs Officer in charge of the warehouse shall allow clearance of the goods from the warehouse for supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion over the receiving Unit or Developer for demand of duty from the receiving Unit or Developer; (v) where the supplying and receiving Units or Developer are located in the same Special Economic Zone, the provisions of subrules (i) and (iv) shall not apply and the movement of goods shall be allowed and such transactions shall be recorded in the regular books of accounts of the receiving Unit or Developer and the supplying Unit and no Bill of Entry shall be required to be filed. (16) Procurement of cut and polished diamonds and precious and semiprecious stones from Domestic Tariff Area-A gem and jewellery Unit may procure cut and polished diamonds and precious and semi precious stones from the Domestic Tariff Area, as per the following procedure, namely:- (i) the parcel shall be brought into the Zone in a sealed condition by the authorized representative of the Domestic Tariff Area supplier or Customs House Agent, who shall present the invoice clearly marked original, duplicate and triplicate to the Authorized Officer at the gate; (ii) the Authorized Officer shall register the invoice at the gate of Special Eco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods which have been procured from DTA at all and neither does the Central Excise Act or Rules provided for such refund. The exemption which is available under SEZ Rules is only through the process of bond/legal undertaking. Therefore, the appeal needs to be dismissed both on merits and on the grounds of lack of jurisdiction. 9. I have considered the arguments on both sides and perused the records. The appellant, a developer of SEZ unit has procured goods from a DTA unit which he could have also procured without payment of excise duty if he had followed the appropriate procedure prescribed under SEZ Act and Rules. SEZ area is treated for all practical purposes as a place outside India. For this reason, goods which are imported into SEZ are not subject to customs duties. Goods from DTA which are supplied to SEZ units are treated at par with exports. In fact, documents such as ARE-1 and Bill of Export which are usually filed in case of exports are also filed in case of SEZ units. In case of actual exports, Central Excise Act provides for two options viz., (1) Export under Bond under Rule 19 and (2) Export under claim for rebate under Rule 18 of Central Excise Rules ..... 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