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TMI Blog2019 (2) TMI 1863X X X X Extracts X X X X X X X X Extracts X X X X ..... - Excise Appeal No. 51156 of 2018, 51158 of 2018 - FINAL ORDER NOS. 51317 – 51318/2019 - Dated:- 11-2-2019 - HON BLE MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) AND HON BLE MR. BIJAY KUMAR, MEMBER (TECHNICAL) Shri Om P. Agarwal, C.A. for the appellant Shri V. B. Jain, Authorised Representative for the respondent ORDER ANIL CHOUDHARY: The issue in both these appeals, where the appellant is operating under SEZ, whether on debonding they are liable to pay duty on cement and iron steel procured duty free for construction and development of their unit. The details of the common impugned order is as follows: Sl. No. Name of the appellant Appeal No. Order in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant preferred appeals before the learned Commissioner (Appeals) pleading that construction material like cement and steel used in construction and development of the SEZ unit are not capital goods as defined in Rule 2(1)(e) of the SEZ Rules, 2006. However, learned Commissioner (Appeals) was pleased to dismiss the appeals holding that since the construction material namely cement and iron and steel are procured duty free for construction and development of SEZ unit, these are covered in the definition of capital goods. Therefore, the appellants/ SEZ unit have been correctly put to payment of duty foregone at the time of procurement of such material. 4. Being aggrieved, the appellants are before this Tribunal. 5. Learned Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the SEZ status, as the Ministry of Commerce and Industry vide Notification No. S. O. 1229(E) dated 07.05.2014 denotified the SEZ for handicraft at Boranada, Jodhpur. Referring to rule 74 of the SEZ Rules, which provides for at the time of exit of unit a unit shall exit subject to payment of applicable duties on the imported or indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock. Thus, admittedly cement and steel is neither raw material, nor component, nor consumables, nor spares, nor finished goods lying in stock. Further, by no stretch of imagination, cement and steel can be considered as capital goods as the definition specifically provides that capital goods means capital equipment like ..... X X X X Extracts X X X X X X X X Extracts X X X X
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