CESTAT held that supplies of excisable goods from DTA to SEZ...

CESTAT held that supplies of excisable goods from DTA to SEZ units are exempt from central excise duty by virtue of Section 26 of the SEZ Act, 2005, which overrides inconsistent provisions of other laws through Section 51. The Tribunal ruled that exemption granted under SEZ law cannot be curtailed by procedural conditions or requirements prescribed in central excise notifications or circulars, including non-compliance with forms or procedures under such instruments. Consequently, the confirmation of duty demands under Section 11A of the CEA by invoking the extended period, and the imposition of penalty under Section 11AC, were found unsustainable in law. The impugned order was set aside and the appeal of M/s X allowed.