SEZ developer clearances: reversal demand on goods value was unsustainable after the issue had been settled by prior Tribunal rulings.

Demand for reversal of 10% of the value of goods cleared to SEZ developers was unsustainable because the issue had already been settled by prior Tribunal decisions. Those decisions held that such clearances did not warrant the reversal sought by the department, leaving no scope for fresh examination of the controversy. The impugned order was therefore set aside and the assessee's appeal was allowed.

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Issues: Whether the demand of an amount equivalent to 10% of the value of goods cleared to SEZ developers was sustainable.

Analysis: The issue was treated as already settled by prior Tribunal decisions holding that clearances made to SEZ developers did not warrant the reversal demanded by the department. In view of that settled position, the controversy was no longer open for fresh examination.

Conclusion: The demand was set aside and the appeal was allowed in favour of the assessee.

Final Conclusion: The impugned order was overturned and the departmental demand did not survive.

Ratio Decidendi: Where the legal issue concerning SEZ developer clearances is no longer res integra, a demand requiring reversal of 10% of the value of such clearances cannot be sustained.

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