9911796707
TMI Blog2007 (4) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... on the inputs used in the manufacture of the exempted as well as dutiable finished products, without maintaining separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable and exempted goods, as well as failed to pay an amount equal to 8% of total assessable value of exempted finished products as required under Rule 57AD(2)(b), since the relaxations available under Rule 57AD(4) of Central Excise Rules, 1944 of not reversing Cenvat were not applicable to a case where the exempted goods are cleared to a Special Economic Zone. 3. A show cause notice dated 25-1-2002 was issued to the appellant on the ground that during the period 22-1-2001 to 21-3-2001 goods were supplied to units in Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not made in Section 3 of C. Ex. Act, 1944 which was amended w.e.f. 11-5-2001 to include SEZ. Thus as far us Section 3 is concerned, it became operative from 11-5- 2001 vis-a-vis SEZ. 7. Keeping in view the fact that notification prescribing the geographical boundaries of SEZ was issued on 27-3-2001 and the fact that the Section 3 of C. Ex. Act was amended with effect from 11-5-2001, it can be said that technically speaking Kandla Free Trade Zone continued to co-exist till 26-3-2001 despite the fad that Ministry had issued resolution on 1-11-2000 declaring KFTZ as KSEZ and hence, it can definitely be said appellant had fulfilled the condition under Rule 57AD(4) when it supplied the goods to units in KSEZ which was nothing but a supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 71) E.L.T. 425 (CESTAT - Mum) and Pillar inductions India Ltd. v. CCE - 2004 (166) E.L.T. 43 (Tri - Chennai) to contend that there was no machinery provision at relevant time for recovery of the amount due since the law has been amended providing for machinery and the explanation I has been inserted under Rule 6 ibid, which became effective w.e.f. 1-7-2001 and Explanation II has been inserted by Cenvat Credit Rules, 2002 which became effective w.e.f. 1-3-2002. 10. The ld. Commissioner (Appeals) observes that the wordings contained in the Notification No. 52/2000 creating Kandla Special Economic Zone and Notification 12/2001 dated 27-3-2001 specifying Kandla Special Economic Zone as Free Trade Zone and these zones created for extension of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Economic Zone as Free Trade Zone and therefore the Kandla Special Economic Zone could be treated only after 27-3-2001. 12. Kandla Free Trade Zone occupies the geographical area which was subsequently designated as a Special Economic Zone under Notification No. 52/2000. There is no dispute that geographically, Kandla Free Trade Zone and Kandla Special Economic Zone occupied the same area. The geographical area of Kandla Free Trade Zone as described under Rule 2 of the erstwhile Central Excise Rules, 1944, was the same as the geographical area of the Kandla Special Economic Zone described under Notification No. 12/2001-C.E. (N.T.), dated 27-3- 2001 but the designation as "Special Economic Zone" did not alter its status as a "Free Trade ..... X X X X Extracts X X X X X X X X Extracts X X X X
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