2013 (12) TMI 1183 - AT - Central Excise

Waiver of pre-deposit of duty - Clearance of goods to SEZ developers - Held that - assessee has made out a strong prima facie case that supplies made to SEZ developer should also be considered as export in view of the definition of export in Section 2(m)(ii) of Special Economic Zone Act, 2005. Further, Section 51 of the Act provides that the provisions of SEZ Act will have overriding effect if it conflicts with provisions in any other law. Once goods are considered to be exported, there is exemption from provisions of 6(6) of Cenvat Credit Rules, 2004. We also take note of the subsequent amendment made in Rule 6(6)(i) of Cenvat Credit Rules with effect from 31-12-2008. We, therefore, grant the prayer for wavier of pre-deposit and stay recovery of the amount in dispute during pendency of the appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT NEW DELHI dismissed the Miscellaneous Application for early hearing and granted the waiver of pre-deposit of duty of Rs. 78,95,382/- along with penalty. The demand was related to M.S. Bars cleared by the applicant to SEZ developers. The Tribunal considered the supplies to SEZ developers as exports under the Special Economic Zone Act, exempting them from the Cenvat Credit Rules. The waiver of pre-deposit and stay on recovery of the disputed amount was allowed during the appeal process.