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TMI Blog2024 (5) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... Credit Rules, 2004 for clearances to SEZ developers is no more res integra being covered by the judgment of the Hon ble Karnataka High Court in the case of THE COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX AND THE COMMISSIONER OF CENTRAL EXCISE VERSUS M/S FOSROC CHEMICALS (INDIA) PVT LTD AND OTHERS [ 2014 (9) TMI 633 - KARNATAKA HIGH COURT ]. Interpreting Rule 6 of the CENVAT Credit Rules, 2004 in the context of Notification No.50/2008-CE(NT) dt. 31.12.2008 whereby the earlier Rule 6(6)(i) has been amended as cleared to a unit in a special economic zone or to a developer of a special economic zone for their authorised operations w.e.f. 31.12.2008 held that the same is retrospective operation. The said judgment has been followed by the jur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the inputs used in the manufacture of excisable goods cleared without payment of duty to developers of SEZ. Alleging that they have violated Rule 6(2) of the Cenvat Credit Rules, 2004 by not maintaining separate account, show-cause notice dated 15.12.2009 was issued demanding an amount of Rs.1,23,57,507/- equal to 10% of the value of the excisable goods cleared to SEZ units, along with proposal for interest and penalty and by invoking extended period of limitation. On adjudication, the demand was confirmed with interest and penalty. Hence, the present appeal. 3.1. At the outset, the learned advocate for the appellant has submitted that during the relevant period, the appellant had cleared excisable goods to developers of SEZ under cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing judgments: i. CCE ST, Bangalore Vs. Fosroc Chemicals (India) Pvt. Ltd. [2015(318) ELT 240 (Kar.) ii. CCE, Bangalore-III Vs. Elins Switch Boards Pvt. Ltd. [2017(49) STR 398 (Kar.)] iii. CCE, Bangalore-III Vs. Lotus Power Gears (P) Ltd. [2017(346) ELT 347 (Kar.)] 3.2. Further he has submitted that this Tribunal following the decision in the case of Sujana Metal Products Ltd. Vs. CCE, Hyderabad [2011(273) ELT 112 (Tri. Bang.)] which has been upheld by Hon ble Andhra Pradesh High Court reported in 2016(342) ELT A115 (AP), held that the clearances made to SEZ developers fall within the scope of Rule 6(6)(i) of CENVAT Credit Rules, 2004. Further he has submitted that in the case of Commissioner of Customs Vs. Lotus Power Gears (supra), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 2005 (The SEZ Act for short) to provide for the establishment, development and management of the Special 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-2006, Chapter XA of the Customs Act, 1962, the SEZ Rules, 2003, the SEZ (Customs 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. The said judgment has been followed by the jurisdictional High Court in subsequent judgments viz. CCE, Bangalore-III Vs. Elins Switch Boards Pvt. Ltd. [2017(49) STR 398 (Kar.)] and CCE, Bangalore-III Vs. Lotus Power Gears (P) Ltd. [2017(346) ELT 347 (Kar.)]. In Lotus Power G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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