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2015 (3) TMI 955 - AT - Central ExciseAvailment of CENVAT Credit - DTA Clearances - goods cleared to SEZ developers - Non maintenance of separate accounts - Held that:- Assessee had supplied goods from the domestic tariff area to a developer and it is to be treated as an export in view of sub-section 2(m) of the SEZ Act. In case it is treated to be export then all benefits as given to export under any other law should be given. - It is clear from the nature of the excise duty as it has been traditionally understood to be duty only on the manufacture of those goods that are to be consumed within the country and not on the goods to be exported. This is also framework of the Excise Act. As the supply of the goods to a developer of SEZ is treated to be export, there appears to be no reason why this benefit was not there, except that it was due to a mistake or inadvertence that the word developer was not initially included in the sub-rule 6(6)(i) of the 2004-Rules and the developers and units were not given same treatment. Appellants cleared the finished goods to SEZ developers by following ARE-I procedure prescribed under Rule (19) of CER, which is duly approved by the jurisdictional Central Excise authority and also accepted LUT executed by the appellants for this purpose. The Hon ble High Court in the [2013 (5) TMI 460 - CHATTISGARH HIGH COURT] decision also held that the amendment introduced in Rule 6(6) on 31.12.2008, substituting clause (i) by adding both the units of SEZ and developers is retrospective in nature. The Hon ble High Court of Andhra Pradesh has upheld the Tribunal Order in the case of Sujana Metals vide High Court Order (2015 (3) TMI 781 - ANDHRA PRADESH HIGH COURT), dismissed the Revenue appeal. - goods cleared to SEZ developers are treated as export as the appellants followed ARE-I provision. The amended provisions of Rule 6 (6) is applicable retrospectively as held by the Hon ble High Court The demand confirmed by the adjudicating authority is not sustainable. Accordingly, we set aside the impugned order - Decided in favour of assessee.
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