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2018 (10) TMI 1203 - AT - Central ExciseSEZ Unit - refund claim - services used as input service by SEZ developers - N/N. 39/2002 of Central Excise dated 13 August, 2002 - Held that - N/N. 39/2002 allows duty free clearances of goods when such goods are brought into Special Economic Zone by a developer of Special Economic Zone. The appellant was awarded the status of SEZ w.e.f. 16 November, 2010 whereas appellant is claiming benefit of the said notification for the period prior to the attaining the status of SEZ - appellant not eligible for availment of benefit under such notification for the period covered by these appeals - appeal dismissed - decided against appellant.
Issues:
1. Claim for refund of Excise duty by SEZ developers. 2. Interpretation of Notification No.39/2002 of Central Excise. 3. Eligibility for duty free clearances under Notification No.39/2002. Analysis: Issue 1: Claim for refund of Excise duty by SEZ developers The appeals involved in the judgment concern the claim for refund of Excise duty by SEZ developers. The appellants, who were notified as SEZ w.e.f. 16 November, 2010, claimed a refund of Excise duty for the period from 1 April, 2010 to 30 September, 2010. The appellants submitted a letter to the Assistant Commissioner, Central Excise, stating their claim. However, the Assistant Commissioner returned the application citing the absence of authority under the Central Excise Act, 1944 for the refund claim. The Commissioner (Appeals) held that while there are provisions for refund of Service Tax for SEZ developers, no specific procedure for refund of Excise duty has been prescribed, as duty exemption is provided at the procurement stage itself. The Tribunal dismissed the appeals, emphasizing the separate and independent nature of rules and notifications governing Central Excise and Service Tax. Issue 2: Interpretation of Notification No.39/2002 of Central Excise The grounds of appeal before the Tribunal included a reference to Notification No.39/2002 of Central Excise, which the appellant claimed entitled them to the refund. The Tribunal noted that this notification allows duty-free clearances of goods when brought into a Special Economic Zone by a developer. However, the Tribunal observed that the appellant was awarded SEZ status only from 16 November, 2010, while seeking the benefit of the notification for a period before that. Consequently, the Tribunal found the appellant ineligible to avail the benefit under the said notification for the period covered by the appeals. Issue 3: Eligibility for duty free clearances under Notification No.39/2002 The Tribunal's decision to dismiss both appeals was based on the finding that the appellant was not eligible to claim the benefit of duty-free clearances under Notification No.39/2002 of Central Excise for the period in question. The judgment highlighted the importance of the timing of SEZ status attainment concerning the entitlement to duty exemptions as per the relevant notifications. The dismissal of the appeals was pronounced in court after considering submissions from both parties. This detailed analysis of the judgment from the Appellate Tribunal CESTAT, ALLAHABAD provides a comprehensive understanding of the issues involved and the Tribunal's decision on each matter.
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