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TMI Blog2024 (6) TMI 1317X X X X Extracts X X X X X X X X Extracts X X X X ..... XCISE 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] and Division Bench decision of this Tribunal in the matter of SUJANA METAL PRODUCTS LTD. VERSUS COMMISSIONER OF C. EX., HYDERABAD [ 2011 (9) TMI 724 - CESTAT, BANGALORE] . Following the above, it is held that supplies made by the appellant to Developers of SEZ are eligible for exemption and demand of duty and recovery of Cenvat credit is unsustainable. Penalty is also unsustainable. The impugned order is set aside - Appeal allowed. - Hon'ble Mr. P. A. Augustian , Member ( Judicial ) Ms TanmayeeRajkumar , Advocate for the Appellant Mr. M. A. Jithandra , AR for the Respondent ORDE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Moreover, as per the judgment of the Hon ble High Court of Karnataka in the matter of CCE ST, LTU Vs. Fosroc Chemicals (India) P. Ltd. [2014] 50 taxmann.com 389 (Karnataka),the issue regarding retrospective application of the Notification is settled. The learned counsel draws my attention to the following: 13. The Parliament has enacted the Special Economic Zones Act, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2004 with pen and ink and the words to a developer of the SEZ for their authorized operation was there from the inception. This is the understanding of the Government as is also clear from the circular issued by the C.B.E. C. bearing No. 29/2006-Cus., dated 27-12-2006 wherein clause 4 reads as under :- 4. In the light of the aforesaid provisions, with effect from 14-3- 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 noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lies made to a developer of SEZ for their authorized operation and the same is only prospective in nature and the same cannot be applied retrospectively. Relying on the decision of the Tribunal in the case of Gujarat Sidhee Cement Ltd. v. CCE, Rajkot [2007 (216) E.L.T. 55 (Tri. Ahmd.)] and the decision of the Hon ble High Court in the case of Vasu Knitwear v. CCE, Ludhiana reported in 2010 (254) E.L.T. 214 (P H), it was submitted that while interpreting statutes plain language was to be given effect and in the absence of specific provisions for retrospective effect the notification should be read only as in prospective in nature. It was also submitted that the clarification of the Board in F.No. 267/52/2008-CX., dated 7-1-2009 was to the ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of Notification extending the exemption of central excise duty and availing of cenvat credit to assessees who had supplied the goods to SEZ Developers without payment of duty.The issue is squarely covered by the decision of the jurisdictional High Court in the matter of Fosroc Chemicals (India) P Ltd.and Division Bench decision of this Tribunal in the matter of Sujana Metal products Ltd.Following the above, it is held that supplies made by the appellant to Developers of SEZ are eligible for exemption and demand of duty and recovery of Cenvat credit is unsustainable. Penalty is also unsustainable. Hence, the impugned order is set aside and Appeal is allowed with consequential relief, if any as per law. ( Order pronounced in open court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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