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Issues: Whether supplies of excisable goods made by a Domestic Tariff Area unit to SEZ developers or promoters are to be treated as export so as to attract the exception in Rule 6(6) of the CENVAT Credit Rules, 2004 and exclude the operation of Rule 6 of the CENVAT Credit Rules, 2004.
Analysis: The appeal was decided by following the Tribunal's earlier view that supplies to SEZ developers or promoters are to be treated as exports for the purpose of export benefits. The SEZ framework and the overriding effect of Section 51 of the Special Economic Zones Act, 2005 were treated as controlling, and the benefit available under the exception to Rule 6 of the CENVAT Credit Rules, 2004 was held applicable to such supplies. On that basis, the demand raised under Rule 6 was not sustainable.
Conclusion: Supplies of exempted goods to SEZ developers or promoters were held to fall within the export-based exception under Rule 6(6) of the CENVAT Credit Rules, 2004, and the assessee's appeal was allowed.
Final Conclusion: The common ruling granted relief to the assessee in its appeal and left the department without relief in the connected appeals, on the footing that SEZ supplies are to be treated as exports for the relevant CENVAT credit exception.
Ratio Decidendi: Supplies by a DTA unit to SEZ developers or promoters are to be treated as exports for the purpose of applying the export exception under Rule 6(6) of the CENVAT Credit Rules, 2004, in light of the SEZ statutory scheme and the overriding effect of Section 51 of the Special Economic Zones Act, 2005.
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