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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Special Economic Zones

Kaveri Textiles has an SEZ unit that brought in raw material without payment of duties. Under section 28 of the SEZ Act, 2005, who determines how long such goods may remain in the unit, and how?

The Central Government prescribes the period for which goods brought into, or services provided in, an SEZ unit without payment of taxes, duties or cess may remain or continue there. Neither the Developer nor the unit fixes this duration.

  1. AThe Developer, through the unit's lease agreement
  2. BThe Board, by informal circulars to units
  3. CThe Central Government, by prescribing the periodCorrect
  4. DThe unit itself, according to its business needs

Explanation

Section 28 says the Central Government may prescribe the period during which goods brought into, or services provided in, a Unit or SEZ without payment of taxes, duties or cess shall remain or be provided there. The Developer, the Board or the unit has no such power under that section.

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