Clarificatory CENVAT amendment extended excise duty exemption to SEZ developers and units, with Revenue's appeal dismissed.

Substitution of Rule 6(6)(i) of the CENVAT Credit Rules by Notification No. 50/2008-C.E. (N.T.) was treated as a clarificatory amendment with retrospective effect, so the excise duty exemption was available not only to SEZ units but also to SEZ developers. The court followed an earlier coordinate bench view and allied authorities, holding that the later rule change did not operate as a mere prospective amendment. On that basis, the Revenue's appeal was found to lack merit and was dismissed.

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Issues: Whether the substitution of Rule 6(6)(i) of the CENVAT Credit Rules, 2004 by Notification No. 50/2008-C.E. (N.T.) dated 31.12.2008 was clarificatory and retrospective, so that excise duty exemption extended to SEZ developers as well as SEZ units.

Analysis: The appeal was stated to be covered by an earlier coordinate bench decision holding that substitution of the rule was not a mere prospective change but a clarificatory amendment with retrospective effect. On that basis, the exemption from excise duty was treated as available not only to SEZ units but also to SEZ developers. The present appeal was then considered to be without merit in light of that binding view and the allied authorities relied upon.

Conclusion: The question was answered in favour of the assessee, and the Revenue's appeal was dismissed.

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