frication regarding amendment in Special Economic Zoon Rules,200A18 Rule 47. after sub-rule (4) dated 05.08.2016-20g.

| ; f i

= ' Ed)To ke Pn cd Cae Ae, HPL 3 eres at es eri kii)Coci) sjerat,. yetive BElae, eter, Spalthae oe oy j } io: . i OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS: a ge pos | cuSTOM HOUSE, MUNDRA PORT, KUTCH, GUJA RAT- 370 421. | ‘i R | ae | pM one: : 02898-271029_ FAN 22712 em . ic Notice No.-06 7A Subiseh Gasification rea ding amendmect ins special Rennie Zou eth iro ee sitentian of jal Exporters/ Customs brokers /Shipping Lines/ Custodians anid pieanhars of Trade is invited to the Board’s Circular Number 11/2017-Customs dated fed Heprescn lations have been received from field formations requesting clarification regarding amendments made in the Special ficonomic Zone Rules, 2006 by way of inset ling s new Rule 47 (5) brought vide Department of Commerce (DoC) Motification flo. Gok faljudication, Review and Appeal are to be made by jurisdictional Customs and Central a) PE) dated 05.08.2016 wherein functional operations like Refund, Prevail, fiycice authorities Mh accordance with the relevant provisions contained in the Custans Ack, poo &@ Central Excise Act, {994 and the Finance Act, 1994. ; af Koubts have been raised regarding operationalization of these fureections, appropriate authority and time limitation in respect of these functional operations, especially refund claims filed prior to the date of coming into effect af the said nolificatios, Ve. ON OB2O16.

s, appropriate authority and time limitation in respect of these functional operations, especially refund claims filed prior to the date of coming into effect af the said nolificatios, Ve. ON OB2O16. It has been further asked to clarify as to who would be the approprate auihoriiy, the bevelopment Commissioner or the jurisdictional Custots Authority to raise deynand of duiy, if need arises, in respect of un-utilized capital goods/raw material: by a wyit incase it exits/ opts outof the SEZ. é, jdatter has beers examined by the Board. The following clarification is accordingly joven in this regard. ; 4.4 With regard to whether these functional operations of refund, demand, adjudicatien ete. are to be handled prospectively or retrospectively, it is a settled law that unless, otherwise expressed specifically for retrospective application in the notification itself, all notification® sve applicable prospectively only. Therefore, all new cases of refund, demand, adjudication, review and appeal are lo ‘be made by the concerned jurisdictional authorities of Custos, Contyal Excise and Service Tax under the provisions of the respective Acts.

s of refund, demand, adjudication, review and appeal are lo ‘be made by the concerned jurisdictional authorities of Custos, Contyal Excise and Service Tax under the provisions of the respective Acts. Also, with ie coming into effect of the GST laws in the near future, apart from jurisdictional Gretoras Conunigsionerates, the jurisdictional GST Commissionerates will be responsible in respect ofthese firnctional operations with effect from the day GST is rolled out.[functional][operations][would][be] 42 Vie standard operating procedures in respect[of][ these] ax provided in the table helow: iMod+ FunctionalGperationoftefund ||iL The SEZ unit/ DeveloperStandard Operaling shall file the Procedure refund application (SOP) addressed io tht e chnical,Deputyas Commissioner/it may be called,Assistantin theCommissionerOffice of ofjurisdictionalpolicy oF

Si eee 5

~ a

he. Commissioner of Customs, Central Excise, Gervice Tax or GST as the cass riay ii. if required, DC/AC (Policy/ Technical or as they nay be called in Ure Gst regime) would seek comments from the office ol the concerner Development Commissioner on admissibility, limitation including: aspects of unjust enrichment of this refund claim under Customs law. ii, The olfice of the Development Commissioner must provide comments within a maximum period of 2 weeks from the date on which: cach communication is received from the office of the DC/ AC (Policy /, Technical). | iv, DC/ AC (Policy/ Technical) will issue a Spealange Order while | sanctioning such refund claims. 1 2 Demand i.

cach communication is received from the office of the DC/ AC (Policy /, Technical). | iv, DC/ AC (Policy/ Technical) will issue a Spealange Order while | sanctioning such refund claims. 1 2 Demand i. The draft demand/ show cause notice shall be prepared by the, Specified Officer/ Authorized Officer in the concerned office ol thi Development Commissioner and should be transferred to the pCcjAc. (Policy or Technical or as they may be called in the GST regime) in the: | office of the jurisdictional Customs/ Central Excise/ Service Tax ol Gs Commissioner at least 8 weeks before the demand becomes time barred ‘along with all Relied Upon Pocuments (RUDS) | ii. DC/ AC (Policy or Technical) will be at liberty to examine all aspects: with respect to the demand, and if necessary, May seek further inputs / information from the office of the concerned Development Conmissioner betore putting up to the appropriate authority based ant | the monetary limits prescribed for issuance of the Show Cause Notice: from time to tine iii. Demand for the past period will be issued by the office of the: jurisdictional Commissioner of Customs/ Central Excise/ Service Tar fi | csr if it is duly sponsored by the Specified Officer/Authorized Officer) -~ andExcise, the demandService Tax confirmsor GSTtolaws the timeand limitation,procedure underprescribed Customs,under Central:(i) o: |1 3 ‘Adjudication(ii)All pendingabove.

icer/Authorized Officer) -~ andExcise, the demandService Tax confirmsor GSTtolaws the timeand limitation,procedure underprescribed Customs,under Central:(i) o: |1 3 ‘Adjudication(ii)All pendingabove. demands shall be adjudicated by the appropriate authority i as prescribed under the Customs, Central Excise, Service Tax or GST, jaws and the rules made there under including demands issued prior to. 05.08.2016 because the act of adjudication is prospective in nature. | 4 | Review & Same as provided under the Customs, Central Excise, Service Tax 0} the Appeal ‘GST laws and rules made there under, Incase, 4 demand gets confirmed, the realization there of must be initiated by the jurisdictional Customs/ Central xcise/ Service Tax/ GST authority. However, the office of ihe Development Commissioner will assist the Customs authority in such realization as they have the BLUT (Bond cum Letter of Undertaking): | signed by the unit/ developer and they are administratively under ihet | jurisdiction. 3 The question now arises as to how the old cases of refund pending as on the date of the coming into effect of this notification will be sanctioned/ entertained by the Customs, Central Excise or Service Tax or Central GST authorities. The gap in the law was that there was no provision of giving refund in SEZ law. That provision has now been extended by

~

Le ‘ #

stoms, Central Excise or Service Tax or Central GST authorities. The gap in the law was that there was no provision of giving refund in SEZ law. That provision has now been extended by

~

Le ‘ #

• Y way of amending SEZ Rules by inserting new Rule 47 (5) empowering officers of Customs eo issue refund claims. Therefore, refund cases of past, which are otherwise in order, both oan account of limitation and merit (even though filed in the office of the Development Comissioner) should be issued by Customs officers.

4 The issue of interest on delayed payment of refund may arise in some cases. However, in such cases, the date on which such refund claims are received by jurisdictional Customs, ‘ontral Excise or Service ‘Tax or Central GST field formations would be relevant for our officers for the purpose of interest rather than the period for which it was lying with ad be authorities, for which DOC will take necessary action as deem fit by them, if need arises,

vant for our officers for the purpose of interest rather than the period for which it was lying with ad be authorities, for which DOC will take necessary action as deem fit by them, if need arises,

4" ‘The second issue relates to appropriate authority to demand duty in case a unil opts out of the SEZ scheme. As per Rule 74 of SEZ Rules, 2006, such exit shall be subjected to payment of applicable duties on the imported or indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock. The proviso to the said Rule states that if the unit has not achieved positive net foreign exchange, the exit shall be subjected to penal action under the provisions of Foreign ‘Trade (Development and Pepulation) Act, 1992. Therefore, the Development Commissioner under the said Act may impose penalty on unit for not achieving positive nel foreign exchange. However, in respect of duty benetits already taken on the unutilized capital goods/ raw materials for carrying, out authorized operations, demand, adjudication and appeal thereof shall be made by tie jurisdictional Customs, Central Excise & Service Tax authority under Rule 47(5) of the Gi, Pules, 2006 as being brought out by notification GSR 772(1) dated 05.08.2016 following, procedure given in point no. (i) and (ii) against ‘Demand’ in the table above. Ee Difficulty faced in this regard, ifany, may be brought to the notice of this office. piven cfr[eet][aire] g[Yel)] Te (P. V.R. REDDY) wert aT /Principal Commissioner, F. No. VHl/48- 06/ PN/AG/CHM/ 2017-18 No.

ty faced in this regard, ifany, may be brought to the notice of this office. piven cfr[eet][aire] g[Yel)] Te (P. V.R. REDDY) wert aT /Principal Commissioner, F. No. VHl/48- 06/ PN/AG/CHM/ 2017-18 No. VHl/48- 06/ PN/AG/CHM/ 2017-18 VHl/48- 06/ PN/AG/CHM/ 2017-18 06/ PN/AG/CHM/ 2017-18 PN/AG/CHM/ 2017-18 2017-18 Date: 12.04.2017... 12.04.2017... Ws

F. No. VHl/48- 06/ PN/AG/CHM/ 2017-18 No. VHl/48- 06/ PN/AG/CHM/ 2017-18 VHl/48- 06/ PN/AG/CHM/ 2017-18 06/ PN/AG/CHM/ 2017-18 PN/AG/CHM/ 2017-18 2017-18 Date: 12.04.2017... 12.04.2017... Ws @e@ Copy to:The Chief Commissioner of Customs, Gujarat Zone, Ahmedabad. f a pet Hee i, 4. The Principal Commissioner of Customs, Ahmedabad / Kandla "4 St 2. The Commissioner of Customs, Jamnagar. tie ay 3 The Additional Commissioners, Custom House, Mundra.. hE lf} 4, All Deputy/ Assistant Commissioners, Custom House Mundra. rdf 5, ‘The Shipping Agent Association, Mundra. , wre 6. The Customs Brokers Association, Mundra 7. The Container Freight Station Association, Munelra. @ The Kandla custom House Agent Association, Kandla 9. M/s MICT, Terminal, Mundra. 10. M/s Adani Port & Special Economic Zone Ltc., Mundra. 11. Notice Board/ Guard File. 12. EDI Section for uploading on the website