Supreme Court: No Export Duty on Domestic Supplies to SEZs, Clarifies Legal Position

• The Supreme Court ruled that export duty cannot be levied on goods supplied from Domestic Tariff Area (DTA) units to Special Economic Zones (SEZ).
• The Court clarified that such supplies do not qualify as ‘exports’ under the Customs Act, as SEZs are within Indian territory.
• The definition of ‘export’ under the SEZ Act is a legal fiction meant for granting benefits, not for imposing export duty.
• The decision resolves conflicting interpretations, provides relief to businesses, and supports the ‘Make in India’ initiative by reducing costs for SEZ units.

Source: trilegal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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