Sale of a product to SEZ unit without excise invoice, Central Excise

[GANESH B]

An excise dealer (also trades without passing cenvat) can purchase a product by paying excise duty from a manufacturer. Can he sell the product to a SEZ customer without issuing a excise invoice? (issues only commercial invoice without mentioning excise). And the customer also requested to issue the product by sealing (as it is from manufacturer) with unique identity (invoice/delivery challan/note) and delivers the product at the customer premises(SEZ). Is it possible to do like that or not? Possible reasons/workouts/comments please.

Posts / Replies

[Surender Gupta]

As I understand from your query, SEZ customer of the dealer requires the material to be dispatched directory from the source i.e. manufacturer. The proposition is allowed as: The manufacturer would issue an invoice showing the SEZ unit as consignee and dealer as buyer. Dealer would issue a commercial invoice with reference to excise invoice of the manufacturer. Now under excise, there are two options, to removal the goods without payment of duty under bond / LUT or under claim of rebate. Normal export procedure i.e A.R.E.1 / A.R.E.2 form procedure would be followed if the benefit under central excise to be availed.