CESTAT Overturns 10% SEZ Supply Demand, Sets Precedent

The Appellate Tribunal CESTAT, Ahmedabad, allowed the appeal, setting aside the demand for 10% of the value of goods supplied to SEZ developers during 2008-2009. The Tribunal relied on previous judgments, including Sujana Metal Products Limited vs. CCE Hyderabad and Sujako Interiors Pvt. Limited, to establish that the issue had been settled. The judgment emphasized that the requirement for the appellant to pay the 10% amount was no longer open for debate, resulting in a favorable outcome for the appellant.

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Issues:
Confirmation of demand for 10% value of goods supplied to SEZ developers during 2008-2009.

The judgment by the Appellate Tribunal CESTAT, Ahmedabad, addressed the issue of the confirmation of demand for an amount equal to 10% of the value of goods cleared by the appellants to SEZ developers during the period 2008-2009. The adjudicating authority had upheld the requirement for the appellant to pay 10% of the amount for the goods supplied to SEZ developers. The Tribunal noted that the issue had been settled in previous judgments, specifically referencing the cases of Sujana Metal Products Limited vs. CCE Hyderabad, Sujako Interiors Pvt. Limited, and the final order of the Tribunal in the case of M/s. Polycab Wires Pvt. Limited. Citing these precedents, the Tribunal set aside the impugned order and allowed the appeal, indicating that the issue was no longer open for debate. The judgment emphasized the settled nature of the issue based on previous legal decisions, leading to the favorable outcome for the appellant in this case.

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