Maintainability of rebate appeals to SEZ supplies turns on the separate operation of excise and SEZ law.

Rebate of duty on goods supplied from the Domestic Tariff Area to a Special Economic Zone was treated as falling outside the class of appeals maintainable before the Tribunal under clause (b) of the proviso to section 35(1) of the Central Excise Act, 1944. The governing Larger Bench view was that the Special Economic Zones Act, 2005 and the Central Excise Act, 1944 operate in their respective fields, and section 51 of the Special Economic Zones Act, 2005 does not create a conflict altering maintainability. Following that binding ruling, the Tribunal held the Revenue's appeal was not maintainable.

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Issues: Whether the Revenue's appeal against grant of rebate of duty on goods supplied from the Domestic Tariff Area to a Special Economic Zone was maintainable before the Tribunal under clause (b) of the proviso to section 35(1) of the Central Excise Act, 1944.

Analysis: The appeal was tested against the Larger Bench decision holding that rebate on supplies from the Domestic Tariff Area to a Special Economic Zone does not fall within the class of appeals maintainable under clause (b) of the proviso to section 35(1) of the Central Excise Act, 1944. The governing view recognised that the Special Economic Zones Act, 2005 and the Central Excise Act, 1944 operate in their respective fields and that the overriding clause in section 51 of the Special Economic Zones Act, 2005 does not create a conflict warranting a different result on maintainability. On that basis, the Tribunal followed the binding Larger Bench ruling.

Conclusion: The appeal was not maintainable before the Tribunal.

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