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TMI Blog2017 (2) TMI 1490X X X X Extracts X X X X X X X X Extracts X X X X ..... om payment of sales tax by the state government by any notification and as revenue unable to bring on record any notifications issued by the state government or otherwise to indicate that inter unit transfers from EOU to DTA are exempted. T he credit taken by the respondent is correct and legal and does not require any interference - Appeal dismissed - decided against Revenue. - E/1006/2011 - (DB) - Final Order No. 52060/2017 –EX (DB) - Dated:- 28-2-2017 - Mr. M.V. Ravindran, Member (Judicial) and Mr. V. Padmanabhan, Member (Technical) Rep. by Shri Yogesh Agarwal, DR for the Appellants- Revenue Rep. by Shri Amarjeet Singh, Advocate for the respondent- Assessee ORDER This appeal is filed by the Revenue against OIA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared in DTA to their units, hence, the exemption for SAD is not applicable to them. 4. Ld. Counsel appearing on behalf of the respondent submits that the issue is no more res-integra inasmuch as the Tribunal in the case of Micro Inks vs. CCE, Daman 2014 (303) ELT 99 (Tri. Ahmd.), VVF Limited vs. CCE, Belapur 2015 (315) ELT 303 (Tri. Mumbai), on identical issue, has held that the benefit of exemption from SAD cannot be denied to the assessee, if he is clearing the goods to his own unit/ sister concern on stock transfer. 5. On careful consideration of the submissions made by both sides and on perusal of the record, we do find that the issue regarding denial of exemption of SAD on the ground that respondent has not discharged th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy of sales tax on the finished goods cleared from 100% EOU, it would be incorrect to hold that the goods were exempted from sales tax, more so when the appellant has discharged the sales tax on the same products which were cleared to independent buyers. Secondly, we find that the lower authority seems to have been guided by the argument that inter unit clearance are not taxed by the State Government and is to be construed as an exemption granted. This is totally a wrong perception of the law inasmuch as that exemption, if any, under statute needs to be granted in accordance with law i.e., by issuance of notification by the concerned authorities. It is nobody s case that the State Government has no power to exempt sales tax/VAT on specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Larger Bench in the case of Moser Baer (I) Ltd. (supra). In our view, the reliance on the ratio seems to be erroneous since the question which was raised before the Larger Bench was not the question that is before the Bench in the proceedings in these appeals. The Larger Bench was specifically referring to the issue which was in respect of a 100% EOU availing sales tax exemption, for determining the Excise duty payable on aggregate value of customs duty by inclusion of SAD, whether should be taken into account or not while answering such a reference, Larger Bench has held that the assessee in that case was availing sales tax exemptions in respect of sales from their unit located in the notified backward area, as has been speci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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