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TMI Blog2022 (2) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ear boxes and motors used in the manufacture of final products. The goods were ultimately cleared to units in SEZ without payment of duty. The department was of the view that as the clearances are made to SEZ without payment of duty, the appellant is not eligible to avail the exemption of Notification 67/95-CE. Show Cause Notice was issued to the appellant demanding to recover the duty on the captively consumed goods along with interest and for imposing penalty. After due process of law, the original authority confirmed the demand, interest and penalty. Aggrieved by such order, the appellant is now before the Tribunal. 2. The learned counsel Shri Joseph Prabhakar appeared and argued for the appellant. He submitted that the appellant has cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue contended that Section 26(1)(c) of the SEZ Act clearly exempts the goods supplied by the DTA to SEZ units/developers and this should be considered while construing the proviso to Notification No. 67/95-C.E. This proposition of the Revenue is not acceptable and the word used in the proviso to Notification No. 67/95-C.E. is dutiable and exempted final products in relation to CENVAT Credit Rules, 2001. The CENVAT Credit Rules is to enable availment of CENVAT credit of excise duty or any other duties specified under the Central Excise Act or Customs Act or under the Finance Act. In the present case, the final product cement is an excisable commodity falling under Chapter 25 of CETA which are dutiable. There is no exemption of excise duty on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o such conditions, safeguards and procedure as may be specified by notification by the Board. There is no dispute that the appellants had duly followed the procedures set out in the above Rules, and executed bond before the excise authorities and cleared the goods without payment of duty. If the goods are fully exempted, the question of following the procedure under ARE-1 and execution of bond does not arise. Accordingly, we hold that the cement cleared to SEZ unit/developers are not exempted goods but cleared without payment of duty by following the procedures and conditions stipulated in both SEZ and Rule 19 of CER Rules and the clinkers used captively for manufacture of cement cleared to SEZ is covered under Notification 67/95 from exe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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