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2024 (5) TMI 189 - CESTAT BANGALORECENVAT Credit - requirement to pay 10% of the value of the excisable goods cleared to a SEZ developer in terms of Rule 6(3)(i) of CENVAT Credit Rules, 2004 - non-maintenance of separate records - HELD THAT:- There is no dispute about the fact that during the disputed period, the appellant had cleared furnitures against ARE-1 and raised proper invoices to SEZ developers without payment of duty. It is found that applicability of Rule 6(2) of the CENVAT Credit Rules, 2004 for clearances to SEZ developers is no more res integra being covered by the judgment of the Hon’ble Karnataka High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX AND THE COMMISSIONER OF CENTRAL EXCISE VERSUS M/S FOSROC CHEMICALS (INDIA) PVT LTD AND OTHERS [2014 (9) TMI 633 - KARNATAKA HIGH COURT]. Interpreting Rule 6 of the CENVAT Credit Rules, 2004 in the context of Notification No.50/2008-CE(NT) dt. 31.12.2008 whereby the earlier Rule 6(6)(i) has been amended as “cleared to a unit in a special economic zone or to a developer of a special economic zone for their authorised operations” w.e.f. 31.12.2008 held that the same is retrospective operation. The said judgment has been followed by the jurisdictional High Court in subsequent judgments COMMISSIONER OF C. EX., BANGALORE-III VERSUS ELINS SWITCH BOARDS PVT. LTD. [2014 (10) TMI 1066 - KARNATAKA HIGH COURT] and COMMISSIONER OF CENTRAL EXCISE BANGALORE-III, VERSUS M/S. LOTUS POWER GEARS (P) LTD. [2016 (6) TMI 998 - KARNATAKA HIGH COURT]. In Lotus Power Gears’s case, the Hon’ble High Court further observed that the judgment of the jurisdictional High Court is to be followed even a SLP has been filed before the Hon’ble Supreme Court against the earlier judgment as there is no stay granted by the Hon’ble Supreme Court. The impugned order is set aside - Appeal allowed.
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