Page 124 - ELT_1st August 2020_Vol 373_Part 3

306 EXCISE LAW TIMES [ Vol. 373

(vi) Those Power Plants in SEZ which were approved prior to 27-2-2009,
and subject to show of Power Guidelines and provisions of SEZ Act
and Rules, either as an infrastructural facility by Developer/Co-
Developer or as a unit in the processing area, will be permitted to op-
erate. It is relevant that during the period of installation of such plants,
due to benefits and capital investment of mega power plants were
available under the then prevalent policy guidelines even in the DTA
area.
Hence, such power plant will be allowed O&M benefits only with re-
gard to the average monthly power supply to entities within the same
SEZ during the preceding year. Henceforth, no Q&M benefits including
service tax exemption will be allowed for power supplied to DTA/other S
EZ/EOU’s from such power plants. The surplus power generated in such
power plants may be transferred to DTA without payment of duty, keeping
in consideration of the fact that no duty-free benefits on raw materials con-
sumables et cetera have been availed for generation of such power. However,
those power plants not having the capacity of the mega power plant,
as given in DoR Notification No. 21/2002-Customs dated 1-3-2002
will be required to pay duty for sale in DTA, on account of duty-free
import of capital goods as determined by DoR.”
30. As far as exemptions under the Special Economic Zones Act, 2005 is
concerned, there are two provisions which grant exemptions to Developers/Co-
Developers in a Special Economic Zones. They are Section 7 in Chapter II and
Section 26 in Chapter VII of the Act. They are reproduced below :

Special Economic Zones Act, 2005
Chapter II : Chapter VII :
EXEMPTION FROM TAXES, SPECIAL PROVISION FOR FISCAL ECONOMIC
DUTIES OR CESS. ZONES.
Section 7 : Section 26 :
Any goods or services exported (1) Subject to the provisions of sub-section (2), every
out of, or imported into, or pro- Developer and the entrepreneur shall be entitled
cured from the Domestic Tariff to the following exemptions, drawbacks and conces-
Area by, - sions, namely :-
(i) a Unit in a Special Economic (a) exemption from any duty of customs, un-
Zone; or der the Customs Act, 1962 or the Custom
(ii) a Developer : Tariff Act, 1975 or any other law for the
tune being in force, on goods imported in-
shall, subject to such terms, con- to, or service provided in, a Special Eco-
ditions and limitations, as may be nomic Zone or a Unit, to carry on the au-
prescribed, be exempt from the thorised operations by the Developer or
payment of taxes, duties or cess entrepreneur;
under all enactments specified in
the First Schedule. (b) exemption from any duty of Customs, un-
der the Customs Act, 1962 or the Customs
Tariff Act, 1975 or any other law for the
time being in force, on goods exported
from, or services provided, from a Special
Economic Zone or from a Unit, to any
place outside India :

EXCISE LAW TIMES  1st August 2020  124