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TMI Blog2007 (2) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... case are that the appellants are engaged in the manufacture of reprocessing of plastic materials located in Kandla Special Economic Zone. The final product was being exported by them and part of it was being cleared in the domestic tariff area. As per Section 3 of the Central Excise Act, 1994, the units located in the SEZ are required to pay duty equivalent to duty of customs leviable on like and similar goods when imported into India. Accordingly, when the goods were cleared by the EOU, the total duty of excise constitute the following : (a) Basic Customs duty portion levied under Section 12 of the Customs Act, 1962 (b) Additional duty portion levied under Section 3(i) of the Customs Tariff Act, 1975 (c) Special Additional duty portion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is available to all manufacturers who are engaged in the reprocessing of plastic materials. SEZ units cannot be put at a disadvantage as against other units. Therefore, exemptions which are available to units other than SEZ units are equally applicable to them also. It was submitted that duty chargeable under Section 3 of the Central Excise Act relating to units situated in SEZs is in the nature of excise duty and it is only for the purpose of computation that duty equivalent to duties of customs chargeable on like goods, when imported into India is being charged. Therefore, once there is an exemption notification granting exemption from excise duty, no duty can be charged on the goods manufactured by the SEZ units also. 5. The learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the bar under proviso to Section 5A of the Central Excise Act, 1944 which specifically provide that unless specifically provided in the Notification issued under Section 5A, no exemption therein shall apply to excisable goods which are produced or manufactured in a free Trade zone, or a SEZ. Thus, in order to claim exemption, the notification itself should carry a clause that the same will apply to units located in SEZ also. The fact that there is no such provision in notification No. 3/2001-C.E. extending the benefit to SEZ units, there is even no need to add any further explanation that such exemption shall not apply to SEZ units. However, explanation seeks to remove any remote doubt, that such benefit will not apply to SEZ units. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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