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2010 (7) TMI 290 - HC - CustomsSupply made from DTA to a SEZ - Section 7 of the SEZ Act provided that any goods procured from the DTA to a SEZ unit would be exempt from the payment of taxes, duties or cess, under all enactments specified in the First Schedule - Section 53 of the SEZ Act provides that the SEZ shall be deemed to be a territory outside the customs territory of India, for the purpose of undertaking its authorised operations the question would be whether a SEZ does not continue to be a part and parcel of India. If a SEZ was to be treated as being outside India, there was hardly any necessity under Section 26 to exempt from customs duty any goods which are imported into a SEZ and likewise exempt export duties when exported from a SEZ – Held that: - The levy of customs duty on exports is sanctioned by Entry 83 of List I of the VII Schedule to the Constitution - provisions of the SEZ Act would render’ the provisions unconstitutional as a levy of customs duty on export of goods from India cannot be with reference to the provisions of the SEZ Act. The authorities under the SEZ Act are without jurisdiction in seeking to enforce the li ability which could arise only under the Customs Act. Hence, the instructions issued by the respondents under the impugned notification are wholly illegal and cannot be sustained - petitions are allowed accordingly.
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