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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether the amended proviso to Rule 30(8) of the Special Economic Zone Rules, 2006 permitting reimbursement of duty in lieu of drawback against supplies to Special Economic Zone developers against Indian rupees also extends to supplies made to Special Economic Zone units, so as to permit drawback on supplies to a Special Economic Zone unit.
Analysis: The proviso inserted in Rule 30(8) by Notification GSR 72(E), dated 3-2-2009 was read by the Authority according to its plain terms. The text specifically refers to supplies made by a Domestic Tariff Area supplier to Special Economic Zone developers and does not use language extending the benefit to Special Economic Zone units. The accompanying Instruction No. 9, dated 18-2-2009 also described the procedure as one concerning reimbursement for supplies to SEZ developers against Indian rupees. On that construction, the benefit could not be enlarged to cover supplies to SEZ units. The Authority further held that the statutory provision controlled the matter and that any contrary procedure could not override the rule.
Conclusion: The proviso to Rule 30(8) applied only to supplies to Special Economic Zone developers and not to supplies to Special Economic Zone units; the claim for drawback on supplies to the SEZ unit was not admissible.
Final Conclusion: The revision application was allowed and the order granting relief was set aside, with the original rejection restored.
Ratio Decidendi: Where the language of a fiscal exemption or drawback provision is clear, it must be applied strictly according to its terms and cannot be extended by implication beyond the class of transactions expressly covered.
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