DTA to SEZ supplies qualify as export-linked clearances, supporting refund of accumulated CENVAT credit under the SEZ framework.

Supplies from a DTA unit to an SEZ unit are treated as export-linked clearances under the SEZ framework, which has overriding effect where inconsistent with other laws. On that basis, refund of unutilised accumulated CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 remains admissible for such clearances, because the SEZ Act and Rules recognise them for export-related benefits and the relevant Board circulars support that position. The cited amendment notifications did not change this treatment, so rejection of the refund claim was not sustainable and the refund was upheld.

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Issues: Whether refund of unutilized accumulated CENVAT credit under Rule 5 of the Cenvat Credit Rules, 2004 is admissible in respect of clearances made from a DTA unit to an SEZ unit.

Analysis: Supplies made from a DTA unit to an SEZ unit are treated under the SEZ framework as export-linked clearances. The statutory scheme under the Special Economic Zones Act, 2005 and the Special Economic Zones Rules, 2006 recognizes such supplies as exports for the purpose of grant of export benefits, and the SEZ Act also operates with overriding effect where there is any inconsistency with other laws. The Board circulars relied on clarified that licit supplies to SEZ from DTA continue to qualify for export-related benefits, including rebate and refund of accumulated CENVAT credit, and the amendment notifications did not alter that position.

Conclusion: Refund under Rule 5 was admissible and the rejection of the claim was not sustainable.

Final Conclusion: The appeal failed and the order allowing the respondent's refund claim was sustained.

Ratio Decidendi: Supplies from DTA to SEZ are to be treated as export-linked clearances for purposes of export benefits under the excise and CENVAT regime, including refund of accumulated credit, unless the special SEZ law expressly provides otherwise.

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