2013 (6) TMI 508 - AT - Central Excise

Cenvat Credit - goods supplied to SEZ without payment of duty - Rule 6 of Cenvat Credit Rules. - Held that - Supplies to SEZ developers/units in the SEZ are deemed exports. Therefore, the appellant is entitled to avail Cenvat credit on inputs/input services used in or in relation to the manufacture of final products supplied to SEZ developers/units. This issue has been considered by this Tribunal in the various decisions - credit allowed - decided in favor of assessee.

Summary

Issues:
- Appeal against order-in-appeal passed by Commissioner of Central Excise (Appeals), Pune regarding availing Cenvat credit on excisable goods supplied to SEZ developers without payment of excise duty.

Analysis:
1. Facts and Background: The appellant supplied excisable goods to SEZ developers without paying excise duty and claimed Cenvat credit on inputs and input services under Cenvat Credit Rules, 2004. The dispute pertains to a period before 31/12/2008. A show-cause notice was issued, demanding payment at 10% of the goods' price under Rule 6 of Cenvat Credit Rules. The order was confirmed by the Commissioner of Central Excise (Appeals), Pune, leading to the appeal.

2. Legal Submissions: The appellant's advocate argued that the issue aligns with previous Tribunal decisions in cases like Sujako Interiors Pvt. Ltd. and Bhoruka Aluminium Ltd., indicating a favorable precedent. On the other hand, the Additional Commissioner reiterated the lower authorities' findings.

3. Judgment: The presiding judge, P.R. Chandrasekharan, noted the issue's narrow scope and previous Tribunal rulings. Considering supplies to SEZ developers as deemed exports, the appellant was deemed eligible to claim Cenvat credit on inputs and input services used in manufacturing products supplied to SEZ developers/units. Citing precedents, the judge held in favor of the appellant, allowing them to avail Cenvat credit on inputs/input services related to goods supplied to SEZ developers.

4. Decision: Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief. The judgment emphasized the entitlement of the appellant to claim Cenvat credit on inputs and input services used in or related to the production of goods supplied to SEZ developers.