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TMI Blog2008 (10) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... igibility to retention of MODVAT credit on export goods, the said Notfn. No- 12/2001 can also construed as clarificatory Notfn. Issued to formalize the continuity of benefit contemplated in Notfn. No. 126/94 to units located in erstwhile Kandla Free Trade Zone and later Special Economic Zone, as the units continued to qualify as 100% EOU, irrespective whether these were referred as units in Free Trade Zone or Special Economic Zone”. – Reversal of 8% is not required. - E/1873/2003 - A/879/2008-WZB/C-II/EB - Dated:- 23-10-2008 - S/Shri M.V. Ravindran, Member (J) and K.K. Agarwal, Member (T) Shri N.A. Sayed, JDR, for the Appellant. Shri S.S. Gupta, Consultant, for the Respondent. [Order per : M.V. Ravindran, Member (J)].- This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the grounds of appeal in memo of appeal. It is his submission that units located in FTZ and SEZ cannot be equated as provisions of rule 57AD clearly distinguishes FTZ and 100% EOU. It is his submission that in the absence of mentioning of SEZ in the said rules, the assessee has no other option but to reverse 8% of the value of goods cleared, claiming exemption. It is the submission that notification to include clearances to SEZ units eligible under rule 57AD was inserted with effect from 11-5-2002, It is his submission that the said notification is not clarificatory. 4. Learned Chartered Accountant, appearing for the respondent submits that impugned order is correct. It is his submission that KFTZ is specifically defined in rule 2(8) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relevant period of the dispute goods supplied to 100% EOU located in the said zones, would be covered by provision Rule 57AD(4) in amendment of Rule 57C and 57CC of erstwhile Central Excise Rules. Substantially the procedural requirements of these Rules are identical in connection with the reversal 8% of the value of exempted goods on clearance from the factory of manufacture. The law contained in erstwhile in the Central Excise Rules for the purpose of denial of Credit to extend of MODVAT obtained on the input material used in the manufacture of final products in cases of exempted goods, or goods eligible nil rate of duty has been a subject matter for interpretation in several decisions of the Tribunal. Therefore, the law as contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods to units refer in Sub-Rule I read with Sub-Rule 4 of Rule 57C of erstwhile Central Excise Rules. This conclusion follows from a harmonious reading of the provisions of the said Rules, also subsequently incorporated in Rule 57AD(4) of Central Excise Rules and Rule 6(5) of CENVAT Credit Rules 2001. The findings of Dy. Commissioner is based on the ground that while the status of Kandla Free Trade Zone was changed to Special Economic Zone no corresponding amendment was made in Rule 57AD(4) to include Special Economic Zone. I am not in agreement with this finding. Considering the law as stipulated in the Central Excise Rules. The developments would not affect the eligibility of the appellant to clearances of goods without payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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