2010 (1) TMI 1022 - AT - Central Excise

Summary

The appellant sought waiver of pre-deposit and stay of recovery of Rs. 2,16,80,296/-, penalty of 25,00,000/- imposed for clearing excisable goods without duty payment to an SEZ Developer. The demand was confirmed invoking Rule 6(3)(b) of Cenvat Credit Rules, 2004. The Tribunal found that clearances to SEZ developers are treated as exports under the SEZ Act, and the demand was not sustainable. Pre-deposit of dues was waived and recovery stayed pending appeal decision.