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2019 (5) TMI 1017

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..... orial waters of India. As far as SEZs are concerned, the definition of DTA under SEZ Act includes everything located outside SEZs. Therefore, 100% EOU located outside SEZ, constitutes DTA as far as SEZ Act is concerned. Sec.51 of SEZ Act also makes it clear that this Act prevails over any other law. It has also been clarified by the CBEC in their Circular dated 20.04.2015 (supra) that refund of accumulated Cenvat Credit is available when goods are cleared from DTA to SEZ. The appellant was eligible for refund of accumulated Cenvat Credit under Rule 5 of CCR, 2004 - Appeal allowed - decided in favor of appellant. - Appeal No. E/30992/2018 - A/30523/2019 - Dated:- 16-5-2019 - MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri G. Prahlad, Advoc .....

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..... t is the position of the department, therefore, that goods which are supplied to units in SEZ cannot be treated as exports because they are sold within India. Therefore, provisions of Rule 5 do not apply and no refund is admissible on such supplies. It is the case of the appellant that as far as SEZs are concerned, they are governed by SEZ Act, 2005 in which export is defined as follows: (m) Export means - (i) Taking goods; or providing services, out of India, from a Special Economic Zone, by land, sea or air or by any other mode, whether physical or otherwise; or (ii) Supplying goods, or providing services, from the Domestic Tariff Area to a Unit or Developer; or (iii) Supplying goods, or providing services, from one Unit to another Unit o .....

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..... the Circular that since SEZ is deemed to be outside Customs territory of India any clearance of goods from DTA to SEZ will continue to be export and therefore entitled to refund or rebate under Rule 18 of Central Excise Rules, 2002 and of refund of accumulated Cenvat Credit under Rule 5 of CCR, 2004, as the case may be. He also relies on the case law of Orbis India Pvt Ltd [2017 (6) TMI 364 - CESTAT Chennai] in which refund of Cenvat Credit under Rule 5 of CCR, 2004 was allowed in respect of supplies made to SEZ units. He also relies on the case law of Sirmaxo Chemicals Pvt Ltd [2016 (337) ELT 425 (Tri-Mumbai)]. 9. Learned departmental representative would urge that in the light of specific provision, in the form of explanation under Rule 5 .....

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..... ated as sale to DTA. On such supplies excise duty at a rate equivalent to that of Customs Duty leviable on similar product is charged. In that context, the term DTA is taken as not including 100% EOU. 11. However, as far as SEZs are concerned, the definition of DTA under SEZ Act includes everything located outside SEZs. Therefore, 100% EOU located outside SEZ, constitutes DTA as far as SEZ Act is concerned. Sec.51 of SEZ Act also makes it clear that this Act prevails over any other law. It has also been clarified by the CBEC in their Circular dated 20.04.2015 (supra) that refund of accumulated Cenvat Credit is available when goods are cleared from DTA to SEZ. In an identical case, where 100% EOU supplied goods to a SEZ, CESTAT-Chennai in th .....

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