TMI Blog2014 (8) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. - E/40 & 1646/10, E/806/11, E/87011 & 87012/13 & E/85320/14 - Final Order Nos. A/493-498/2014-WZB/C-II(EB) - Dated:- 29-5-2014 - P R Chandrasekharan And Anil Choudhary, JJ. For the Appellants : Shri Gajendra Jain And Ms. Anjali Hirawat, Advs. For the Respondent : Dr. B.S. Meena, Addl. Commissioner (AR) PER : Anil Choudhary These six appeals have been filed by the appellant M/s Ultratech Cement Ltd. A common issue arises in these appeals as to whether the supplies of cement manufactured by the appellant to the contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was found that they had taken credit of duty/tax paid on inputs and input services irrespective of whether they were used for manufacture of goods cleared on payment of duty and also did not maintain separate records for the said purpose. The department contended that since Cement is not covered under the items specified under Rule 6 (3) ibid they were not eligible for reversal of attributable CENVAT credit on input and input services used in respect of manufacture of exempted clearances to the said contractors. It was also found that while clearing the said goods without payment of duty to the aforesaid contractors, they did not pay an amount equal to 10% of the value of the said exempted goods as required under Rule 6(3)(i) of the CENVAT Credit Rule, 2004. It appeared that the said clearances were not covered under clause (i) to (vii) of sub-rule (6) of Rule 6 of CENVAT Credit Rule, 2004 at the relevant time and as such the appellant were required to pay an amount equal to ten percent of value of the exempted goods under Rule 6(3)(i) of the CENVAT credit Rule, 2004, ibid. Hence, the lower authority issued a show-cause notice to the appellant demanding the said amount. During th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 (Bom). In any case there is no revenue loss because, had they opted to pay the duty they would have got the rebate. 3.1 The learned Commissioner (Appeals) vide the impugned order upheld the demands raised recording the findings that Rule 6(6) of the Cenvat Credit Rules, 2004 prior to 1.1.2009 stated that provisions of sub-rule (1), (2), (3) and (4) of Rule 6 were not applicable to the clearances made without payment of duty of a unit in a SEZ for their authorized operation. By virtue of amendment made in the sub-rule (6) w.e.f. 31.12.2008, the Government extended the benefit to the duty free clearances made to the developers of SEZ also. The relevant Notification No. 50/2008-CE dated 31.12.2008 clearly indicates the intent of the legislature that the developer of SEZ who till then did not figure in the statute, were also to be given the benefit along with SEZ units. As the clearances have been admittedly made to the contractors of the developers of SEZ, which are separate from the SEZ unit or its developers, it is settled law that exemption Notification have to be strictly construed and one who claims the exemption must fall within the four corners of such exemption. 4. Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption, concessions available in respect of the goods cleared from the DTA to SEZ. 5. 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. 5.1 Therefore, for the goods in question to qualify as exempted goods for the purposes of Cenvat Credit Rules, the said goods must be (i) subject to nil rate of duty under the schedule to the Central Excise tariff Act, 1985 or (ii) should be exempted from the whole of the duty leviable thereon vide a notification issued under Section 5A(1) of the Central Excise Act, 1944. 5.2 In the present case, it is undisputed that the 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 contractor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lement the aforesaid policy, the Customs Act was amended and Chapter XA with Sections 76A to 76H was inserted. Subsequently, the SEZ-Act was enacted and Chapter XA of the Customs Act was deleted. 34 . Section 2 of the SEZ Act is titled 'definitions'. It provides as follows: . Sub-section (g) of section 2 {sub-section 2(g)} of the SEZ-Act defines 'developer'. It means a person or a State, which is granted a letter of approval under sub-section(10) of section 3 {section 3(10)} of the SEZ Act by the Central Government and includes an authority and a co-developer; . Sub-section (m) of section 2 {sub-section 2(m)} defines the word 'export'. It means supplying goods, or providing services, from the domestic tariff area to a unit or developer. . Sub-section (zc) of section 2 {sub-section 2(zc)} defines the words 'existing unit' and 'unit', it means, a unit which has been set up by an entrepreneur in a SEZ and includes an existing unit. 35 . Section 51 of the SEZ-Act is titled 'Act to have overriding effect'. It provides that the SEZ-Act will have effect notwithstanding anything contained in any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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