2009 (12) TMI 766 - AT - Central Excise

Summary

Issues involved: Stay application by Revenue regarding demand under Rule 6(3) of Cenvat Credit Rules, 2004 for goods cleared to SEZ developers.

Summary:
The Revenue filed applications seeking to stay the operation of impugned orders where the Commissioner vacated the demand of 10% of the sale price of goods cleared to SEZ developers under Rule 6(3) of CCR. The Revenue argued that the impugned clearances occurred before 31-12-2008, making Rule 6(3) applicable, while the respondents contended that the clearances should be treated as exports based on CBEC circulars. The respondents also cited previous Tribunal orders waiving pre-deposit for similar demands. The Tribunal, considering the CBEC clarification and past decisions, held that the clearances were exports and rejected the Revenue's stay applications.

In the case, the Revenue sought to stay the operation of impugned orders where the Commissioner vacated the demand of 10% of the sale price of goods cleared to SEZ developers under Rule 6(3) of CCR. The Revenue argued that the impugned clearances occurred before 31-12-2008, making Rule 6(3) applicable, while the respondents contended that the clearances should be treated as exports based on CBEC circulars. The respondents also cited previous Tribunal orders waiving pre-deposit for similar demands. The Tribunal, considering the CBEC clarification and past decisions, held that the clearances were exports and rejected the Revenue's stay applications.