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TMI Blog2014 (9) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... oods removed without payment of duty or cleared to a "developer" of a special economic zone for their authorized operation. However, in exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government amended the Cenvat Credit Rules, 2004 by issue of a notification - amendment has to be construed as retrospective in nature and the benefit of Rule 6(6)(1) as amended in 2008 has to be extended to the goods cleared to a "developer" of a Special Economic Zone for their authorized operations. Therefore, we do no see any merit in these appeals - Decided against Revenue. - CEA Nos. 29 & 59/2012 , CEA Nos. 31/12, 35/12, 36/12, 27/14, 12/12, 5/14, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat Credit of the duty paid on inputs used in both dutiable and exempted final products cleared by them but were not maintaining separate accounts for receipt, consumption and inventory of the inputs as required under Rule 6(2) of the Cenvat Credit Rules, 2004. The assessee had cleared their final products to SEZ developers without payment of duty against letters of undertaking (LUT) during the period from January 2006 to December 2008 (Ankleshwar Unit) and June 2006 to December 2008 (Bangalore Unit). During the course of verification of the returns of the assessee it was seen that the assessee had not exercised an option to pay an amount equivalent to credit attributable to inputs used in the manufacture of goods cleared to SEZ Develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be construed as prospective in operation or retrospective? 5. Rule 6 of Cenvat Credit Rules 2004 which provide the said benefit prior to amendment reads as under: 6. Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services.- Sub-rule (6) clause (i) reads as under: Sub-rule (6). The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either- (i) cleared to a unit in a special economic zone. 6. As is clear from the aforesaid provision, the benefit of non-reversal/maintenance of separate inventory was extended when the excisable goods were cleared to a unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 7. The contention of the revenue is, that the statutory provision of the notification referred to supra became effective from 31.12.2008 as per para 1(2) of the notification issued by the Government of India and therefore, the finding of the Tribunal that the notification is effective retrospectively from 10.9.2004 is beyond the scope of statutory provision and therefore, the impugned order is liable to be set-aside. 8. Per contra, the learned counsel appearing for the assessee supported the impugned order. 9. What is the effect of substitution of a provision in the place of an existing one is no more res-integra. The Constitution Bench of the Hon ble Apex Court in the case of SHAMARAO V. PARULEKAR vs. THE DISTRICT MAGISTRAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deemed to have been part of the Act from the very inception. 12. Recently, the Hon ble Apex Court in the case of GOVERNMENT OF INDIA VS. INDIAN TOBACCO ASSOCIATION reported in 2005(187) ELT PAGE 162 (SC), while dealing with the exemption notification which was issued by way of substitution, held as under:- 15. The word substitute ordinarily would mean to put (one) in place of another , or to replace . In Black s Law Dictionary, Fifth Edition, at page 1281, the word substitute has been defined to mean To put in the place of another person or thing , or to exchange . In Collins English Dictionary, the word substitute has been defined to mean to serve or cause to serve in place of another person or thing ; t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial Economic Zones Act 2005, overrides the provision of all other laws for the time being in force, notwithstanding anything inconsistent therein with the provision of the Special Economic Zones Act, 2005. This section therefore overreaches and eclipses the provisions of any other law containing provisions contrary to the SEZ Act, 2005. Though the definition of the word export in the SEZ Act, in Sec.2(m) included supply of goods to a Unit or Developer , in clause (i) of sub-rule (6) of Rule 6 of the Cenvat Credit Rules, 2004 the word Developer was conspicuously missing and only unit was included before the 2008 amendment. It is in that context the aforesaid amendment by Notification No.50/2008 CE (N.T) dated 31.12.2008 was brought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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