2011 (9) TMI 148

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.... Act, 1985. During the period from 21/02/2007to 31/01/2008 the appellant cleared their products to M/s.Eon Kharadi Infrastructure Pvt Ltd., who is an SEZ developer without payment of duty under bond as per the prescribed procedure. They also availed Cenvat Credit on the inputs and capital goods used in the manufacture of said goods. The departments was of the view that the appellant has to maintain separate accounts in respect of inputs and capital goods used in the manufacture of dutiable goods and the goods supplied without payment of duty, which has not been done and, therefore, the appellant is required to reverse an amount equal to 10% of the value of the goods cleared to the SEZ developers. Accordingly, a show cause notice dated 29/09....

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....pellant submits that supplies made to SEZ developer have all along be deemed as exports and, therefore, there is no duty liability to be discharged in respect of such supplies. Notification No.50/2008-CE(NT) dated 31/12/2008 amended Rule 6 (6) (i) of Cenvat Credit Rule, 2004 to include goods cleared to SEZ developer for authorised operations. This amendment is clarificatory in nature and, therefore, has retrospective application. Supplies made to SEZ developers are deemed export and not exempt from excise duty and, therefore, the provisions of Rule 6 (3) (b) has no application. The Ld. Counsel also relied on the judgement of this Tribunal in the case of Sujana Metal Products Ltd., Vs. CCE, Hyderabad reported in 2011-TIOL-1170-CESTAT-Bang da....