2015 (2) TMI 181 - AT - Central Excise

Supplies to SEZ from DTA - Clearance to be treated as dutiable goods or exempted goods - whether in respect of supplies made by DTA unit to SEZ developer prior to 13-12-2008 has to be treated as exempted clearances as per CENVAT Credit Rules and consequently provisions of Rule 6(3) of CCR, 2004 applies or not - Held that - after enactment of Special Economic Zones Act, 2005 w.e.f. 10-2-2006, supplies to SEZ from DTA are treated as export of dutiable goods and entitled to benefits as such, including that of exception in Rule 6(6) of CENVAT Credit Rules, 2004, of not requiring separate accounts of dutiable and non-dutiable inputs/services to be maintained - Following decision of Sujana Metal Products Ltd. 2011 (9) TMI 724 - CESTAT, BANGALORE - Decided in favour of assessee.

Summary

The judgment by Appellate Tribunal CESTAT Bangalore in 2015 (2) TMI 181 addressed the issue of whether supplies made by a DTA unit to SEZ developer before 13-12-2008 should be treated as exempted clearances under CENVAT Credit Rules. The Tribunal ruled that such supplies are to be treated as exports of dutiable goods, entitling benefits including exemption from maintaining separate accounts of dutiable and non-dutiable inputs/services. Consequently, all three appeals were allowed in favor of the appellants.