Domestic Tariff Area to SEZ supplies qualify as export, supporting refund of accumulated Cenvat credit under the Cenvat rules.

Goods supplied from the Domestic Tariff Area to a Special Economic Zone are treated as export for refund purposes because the Special Economic Zones Act gives overriding effect to its provisions and deems the Zone to be outside the customs territory of India. On that basis, the statutory scheme under the SEZ Rules and the Cenvat Credit Rules permits refund of accumulated Cenvat credit under Rule 5, and the later excise amendment did not alter that position. The Tribunal followed the settled legal position and the Board's clarification, confirming that such clearances continue to qualify as export for rebate and refund treatment.

---

---

Issues: Whether clearances of goods from Domestic Tariff Area to a Special Economic Zone are to be treated as export for the purpose of refund of accumulated Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2004.

Analysis: The Board's circular dated 28/04/2015 clarified that supply of goods from Domestic Tariff Area to Special Economic Zone constitutes export under the Special Economic Zones Act. It noted that Section 51 gives overriding effect to the Special Economic Zones Act in case of inconsistency, and Section 53 deems an Special Economic Zone to be territory outside the customs territory of India. In that statutory setting, Rule 30(1) of the Special Economic Zones Rules, 2006 contemplates clearance of goods to an Special Economic Zone under bond or as duty paid goods on rebate. The same circular further stated that amendments made by Notification No. 6/2015-C.E. (N.T.) did not alter the position and that such clearances continue to be export for the purposes of rebate under Rule 18 of the Central Excise Rules, 2002 and refund under Rule 5 of the Cenvat Credit Rules, 2004. The Tribunal therefore followed the settled position and the later administrative clarification.

Conclusion: The clearances from Domestic Tariff Area to Special Economic Zone qualify as export, and refund of accumulated Cenvat credit under Rule 5 is admissible. The Revenue's appeal is rejected.

Ratio Decidendi: Goods supplied from Domestic Tariff Area to a Special Economic Zone are to be treated as export for refund purposes, because the Special Economic Zones Act treats the zone as outside the customs territory and overrides inconsistent provisions of other laws.

---