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2014 (8) TMI 655 - AT - Central ExciseCENVAT Credit - Rule 6 of CCR, 2004 - Common inputs/input services for manufacture of dutiable and exempted goods – Cement cleared to contractors of the developers of SEZ without payment of duty – Held that:- The finished goods cleared by the appellants to contractors of SEZ units/developers without payment of duty during the period in dispute are not ‘exempted goods' within the meaning of Rule 2(d) of the Cenvat Credit Rules, 2004. Finished goods manufactured and cleared by the appellants to the contractors of SEZ units/ SEZ developers are subject to a rate of duty under the First Schedule to the Central Excise Tariff Act, 1985 and are not wholly exempt from payment of duty. Further, there is no notification issued under Section 5A(1) of the Central Excise Act, which grants exemption excise duty to good manufactured and cleared by a DTA unit to the contractors of SEZ units/SEZ developers. Therefore, it is submitted that both the conditions required to be fulfilled for the goods in question to qualify as ‘exempted goods' under Rule 2 (d) of the Cenvat Credit Rules, are not satisfied in the present case. Hence, the finished goods cleared by the appellants to the contractors of SEZ units/SEZ developers are not exempted goods. Accordingly, the provisions of Rule 6(1), 6(2) and 6 (3) of Cenvat Credit Rules, 2004 are not attracted in the present case. amendment under Rule 6(6)(i) made on 31.12.2008 is clarificatory in nature and is applicable retrospective from the date when the 2004 Rules were implemented. Accordingly, the impugned orders are set aside - Following decision of UOI Vs. Steel Authority of India Ltd. [2013 (5) TMI 460 - CHATTISGARH HIGH COURT] - Decided in favour of assessee.
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