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TMI Blog2019 (2) TMI 1557X X X X Extracts X X X X X X X X Extracts X X X X ..... thout, admittedly, covering developers of special economic zones. With the coming into force of Special Economic Zones Act, 2005, effective from 10th February 2006, exemption of duties on goods cleared from the domestic tariff area for use of developers or units in special economic zone is accorded by that special statute which does not distinguish between a unit and a developer - The gap in operationalising of the exemptions between two different arms of the Central Government, i.e., Ministry of Finance and Ministry of Commerce, should not have created an artificial, and uncontemplated, distinction between such clearances effected to special economic zones. Section 2(m) of the Special Economic Zones Act, 2005 includes supply from domestic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r alia, being cleared to developers of Special Economic Zone and, in view of the exemption granted to such clearance manufactured out of duty-paid inputs on which CENVAT credit had been availed, it was held that rule 6(3) of CENVAT Credit Rules, 2004 mandated payment of an amount equal to 10% of the sale value if separate accounts of inputs was not being maintained. 2. Learned Counsel points out that the issue itself had been decided by the Tribunal in Sujana Metal Products Ltd v. Commissioner of Central Excise, Hyderabad [2011 (273) ELT 112 (Tri. Bang.)], affirmed by the Hon'ble High Court of Andhra Pradesh, by the Hon'ble High Court of Chattisgarh in Union of India v. Steel Authority of India Ltd [2013 (297) ELT 166 (Chattisgarh)] and by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance and Ministry of Commerce, should not have created an artificial, and uncontemplated, distinction between such clearances effected to special economic zones. Section 2(m) of the Special Economic Zones Act, 2005 includes supply from domestic tariff area to a unit or developer in the definition of 'export' and section 51 of Special Economic Zones Act, 2005 mandates that this statute would prevail over any other in the event of a conflict. 5. Therefore, notwithstanding a subsequent amendment in rule 6(6) to the CENVAT Credit Rules, 2004, to include developer of special economic zones within the escapement covered of rule 6 of the said Rules, the categorization as exports would itself suffice to exclude the applicability of the liability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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