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2013 (6) TMI 10

Head Note:
Levy of SAD on stock transfer by SEZ unit - Clearance of goods by way of stock transfer from the SEZ unit to own DTA manufacturing unit - whether would be eligible for exemption from the payment of SAD under Notification No. 45/2005 Cus dated May 16, 2005? - Held that:- It is conceded position that goods imported by the applicant are not exempted by the State Government from the payment of VAT. It is to be noted that in case of stock transfer two persons are not involved, as the stock transfer is between the units of same legal entity. It is not a “sale” as defined under Section 2(24) of the MVAT Act.

The inevitable conclusion is that VAT which is a tax on sale of goods within the state cannot be levied on stock transfer. Thus being a stock transferred no VAT is chargeable. Section 6A mandates that stock transfer of goods is not covered within the definition of “sale” and as such Central Sales-tax is not levied on stock transfer of goods. Thus eligible for exemption from the payment of SAD under Notification No. 45/2005.


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