2014 (4) TMI 603 - AT - Central Excise

CENVAT Credit - Clearance of aluminium pipes to an SEZ developer without payment of duty - Held that - such clearances can be made without payment of duty - amendment to the Rule brought out in December 2008 has retrospective effect and, therefore, clearances made to SEZ developers without payment of duty have to be considered as rightly made and no duty of demand can be sustained - Following decision of Suzana Metal Products Vs. CCE 2011 (9) TMI 724 - CESTAT, BANGALORE and UOI Vs. Steel Authority of India Ltd. 2013 (5) TMI 460 - CHATTISGARH HIGH COURT - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT Bangalore allowed the appeal of the appellant who cleared aluminium pipes to an SEZ developer without payment of duty. The Tribunal held that clearances to SEZ developers can be made without duty payment based on previous decisions, and therefore, the demand of over Rs.1.59 crores with interest and penalty was set aside.