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TMI Blog2021 (10) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... emption from provisions of Rule 6(1), (2), (3) and(4) available under Rule 6(6)(i) of CCR. Since the appellant had not maintained separate accounts of inputs and input services, it is required to pay an amount equal to 10% of the value of the goods supplied to the SEZ developers. The show cause notice was issued in 2009 covering the period 28.12.2006 to 31.12.2008. In 2008, Rule 6(6)(i) was amended vide Notification No. 50/2008-CE(NT) dated 31.12.2008 to read as cleared to unit in a Special Economic Zone or to developer of a Special Economic Zone for their authorised operations . Whether the notification dated 31.12.2008 giving exemption to supplies made to SEZ developers from Rule 6(1),(2),(3) (4) will have retrospective application? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Rule 14 of Cenvat Credit Rules, 2004 [ CCR ] read with the proviso to section 11A of the Central Excise Act [ Act ]. Interest has also been demanded on this amount under Rule 14 of CCR read with section 11AB of the Act. A penalty of ₹ 4,90,22,299/- was imposed upon the appellant under Rule 15 of CCR read with Section 11AC of the Act. 2. The undisputed facts of the case are that the appellant is a manufacturer of TMT bars, MS rolls and end cuttings falling under Chapter 72 of the Central Excise Tariff and is duly registered with the Central Excise Department and pays Central Excise duty. It also avails the benefit of Cenvat credit under CCR. During the period 28.12.2006 to 30.12.2008, it supplied some goods manufactured by it to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture goods which are supplied to SEZ units the requirements of maintaining separate accounts or paying 10% of the value of the goods do not apply. 4. In this case, the appellant has not supplied the goods to SEZ units but has supplied them to SEZ developers. The case of the Revenue is, therefore, that the appellant is not entitled to the exemption from provisions of Rule 6(1), (2), (3) and(4) available under Rule 6(6)(i) of CCR. Since the appellant had not maintained separate accounts of inputs and input services, it is required to pay an amount equal to 10% of the value of the goods supplied to the SEZ developers. The show cause notice was issued in 2009 covering the period 28.12.2006 to 31.12.2008. In 2008, Rule 6(6)(i) was amended v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Economic Zones for the promotion of exports and for matters connected therewith or incidental thereto. Section 53 of the Act declares that a special economic zone shall, on and from the appointed day, be deemed to be a territory outside the Customs territory of India for the purposes of undertaking the authorized operations. The word export has been defined under Act at Section 2(m). According to the definition of the word export, vide Section 2(m)(ii) export means supplying goods or providing services, from the Domestic Tariff Area to a Unit or Developer. Such exports were exempted from duty of Central Excise under Section 26 of the SEZ Act, 2005 and consequently application of Cenvat Credit Rules. Section 151 of the Special Econom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Procedure) Regulations, 2003, and the exemption Notification No. 58/2003-C.E., dated 22-7-2003 regarding the supply of goods to SEZ units SEZ developers have become redundant. Consequently the supplies from DTA to a SEZ unit, or to SEZ developers for their authorized operations inside a SEZ notified under sub-section (1) of Section 4 of the Act, may be treated as in the nature of exports. 14 . Therefore, it is clear, the said amendment has to be construed as retrospective in nature and the benefit of Rule 6(6)(i) 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. 15 . The substantial question of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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