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2016 (3) TMI 894 - CESTAT MUMBAI

2016 (3) TMI 894 - CESTAT MUMBAI - TMI - Supply to SEZ developer for their authorized office - whether can be treated as export and secondly whether demand of 10% of the value of the goods in terms of Rule 6(3)(i) is correct and legal or otherwise? - Held that:- As per the Hon'ble Karnataka High Court judgment in case of Fosroc Chemicals(India) Pvt. Ltd. (2014 (9) TMI 633 - KARNATAKA HIGH COURT), the issue is settled that even prior to amendment Notification No. 50/2008-CE(N.T.) the supplies mad .....

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ral Excise, Pune, wherein the Ld. Commissioner (Appeals) allowed the appeal of the Respondent 2. The issue involved in the present case is whether the supply to SEZ developer for their authorized office can be treated as export and secondly whether demand of 10% of the value of the goods in terms of Rule 6(3)(i) is correct and legal or otherwise. 3. Shri. R.K. Maji, Ld. Asst. Commissioner (A.R.) appearing on behalf of the appellant Revenue reiterating the ground of appeal submits that in the ide .....

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consideration of various circulars which are binding on the departmental officer therefore impugned order is correct and legal. As regard the Revenue's appeal pending before the Hon'ble High Court, he submits that Hon'ble High Court has not granted any stay against this Tribunal's order and accordingly this Tribunal order is in operation. He also submits that in the identical case of Commr. of C. Ex. & S.T. Bangalore vs. Fosroc Chemicals (India) Pvt. Ltd. - 2014-TIOL-1609-HC .....

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uch supplies should be treated as export even prior to the amendment notification No. 50/2008, I find that Ld. Commissioner (Appeals) has given categorical findings relying on various Board Circulars and interpreting the relevant statutory provisions. Findings of the Ld. Commissioner (Appeals) in the impugned order is reproduced below: "5. I have carefully gone through the records of the case as well as the grounds of appeal and the submissions made during the personal hearing. There has be .....

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firmed of R.s 21,15,637/- alongwith interest and penalty of ₹ 21,15,637/-. Imposed under Rule 15 of Cenvat Credit Rules, 2004 and interest. Since prima facie, there appears to be strong case in favour of the appellant, I waive the pre-deposit and take the appeal of final decision. 6. This main issue to be decided here is whether cenvat credit is permissible to inputs used in the manufacture of finished products cleared to SEZ Developers upto December 2008 without payment of 10% of the valu .....

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empted goods as 'excisable goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to 'nil' rate of duty. (ii) The Order-in-Original does not bring out the details of notification wherein the pumps and parts thereof have been exempted from payment of duty in terms of Central Excise Act, 1944. It has therefore to be concluded that the pumps manufactured by the appellants are dutiable goods. (iii) Rule 6(6) of Cenvat Credit .....

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Cus dated 23-12-06 issued instructions regarding coming into force of SEZ Act in 2006. In terms of enactment of the Acts and Rules clarifications were issued in respect of procurement of goods from the DTA by SEZ units and developers for their authorised operations. Para 3 of the said circular states as under: The important provisions of the Act & the Rules having a bearing on procurement of goods from DTA by SEZ units and SEZ developers for their authorized operations are listed below: - (a .....

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Rules, 2003 and the SEZ (Customs Procedure) Regulations, 2003 made there under, shall not apply to Special Economic Zones; and (d) Section 53 of the Act provides that w.e.f 10.02.2006, a Special Economic Zone shall be deemed to be territory outside the customs territory of India for the purposes of undertaking the authorized operations." (v) Further para 5 of the Circular states as under: "5. The existing SEZs, i.e., the ones notified under section 76A of Chapter X A of the Customs Act .....

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of procurement by SEZ units & SEZ developer from DTA for their authorized operations." (vi) Thus in terms of Board's Circular all clearances without payment of duty from DTA to not only SEZ units but to SEZ developers were in terms of Rule 19 of the Central Excise Rules, 2002. Rule 6(6)(v) very clearly confirms that the provisions of Rule 6(1), (2), (3) & (4) would not apply to clearances of goods cleared for export under bond in terms of provisions of Central Excise Rules, 2002 .....

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