SEZ supplies deemed exports; Rule 6(3)(b) demand set aside on appeal

The appeal was allowed as the Member (Judicial) found that supplies to SEZ Developers were considered exports, making the demand for 10% payment under Rule 6(3)(b) of Cenvat Credit Rules, 2004 unsustainable. The impugned order was set aside, and any consequential relief was granted in accordance with the law.

---

---

Issues Involved:
Whether the assessee is required to pay 10% in terms of Rule 6(3)(b) of Cenvat Credit Rules, 2004 on goods supplied to the SEZ Developer.

Analysis:

The appeal was directed against an Order-in-Appeal passed by the Commissioner of Central Excise (Appeals), Pune-III, where the appeal was rejected, and the Order-in-Original was upheld. The main issue in this appeal was whether the assessee needed to pay 10% as per Rule 6(3)(b) of Cenvat Credit Rules, 2004 on goods supplied to the SEZ Developer.

The appellant's counsel argued that the issue was settled based on their own case and cited several judgments supporting their position. They contended that supplies to SEZ Developers were considered as exports and were covered under Rule 6(6)(1) of Cenvat Credit Rules, 2004, making Rule 6(3)(b) inapplicable.

On the other hand, the Respondent reiterated the findings of the impugned order. After considering both sides' submissions, the Member (Judicial) found that the issue was squarely covered by the judgments cited by the appellant's counsel. It was established that supplies to SEZ Developers were treated as exports, rendering the demand for 10% of the goods' value under Rule 6(3)(b) unsustainable. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief, if applicable, in accordance with the law.

---