2013 (1) TMI 500

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....at Credit of Central Excise duty paid on inputs and capital goods used in or in relation to manufacture of their final products. During the period of dispute i.e. from June 2007, to November 2007 the respondent, in addition to clearances of pipes and tubes on payment of duty to buyers in domestic tariff area, also supplied the goods to SEZ Developers without payment of duty. The Department being of the view that the goods supplied to SEZ Developers are "exempted goods" and since the common Cenvat Credit availed inputs have been used in or in relation to manufacture of dutiable as well as exempted final products, and separate account and inventory of inputs meant for dutiable and exempted final products have not been maintained, the Appellan....

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....pplies to SEZ Developers from duty, and supplies to SEZ Developers do not attract duty as the same are treated as export, the same cannot be treated as exempted goods within the meaning of this term, as defined in Rule 2(d) of Cenvat Credit Rules, 2004, that the Apex Court in the case of Hindustan Petroleum Ltd. v. Collector of Central Excise reported in 1995 (77) E.L.T. 256 (S.C.) has held that the goods exported without payment of duty under Rule 13 of Central Excise Rules, 1944 not "exempted goods", that in view of this, by virtue of the provisions of Rule 6(6)of the Cenvat Credit Rules, 2004, the provisions of sub-rule (1) (2) & (3) of Rule 6 of Cenvat Credit Rules, 2004, would not be applicable to the supplies of excisable goods made t....

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....yment on duty and the exempted final products supplied to SEZ Developers, in respect of the good supplied to SEZ Developers, the appellant would be liable to pay an amount equal to 10% of the sale value in terms of the provisions of Rule 6(3)(b) of the Cenvat Credit Rules. He therefore pleaded, there is no infirmity the impugned order. 5. We have considered that rival submissions. There is no dispute that common Cenvat Credit availed inputs have been used in the manufacture of goods supplied to DTA buyers on payment on duty and also in respect of the goods supplied to SEZ Developers without payment of duty. The point of dispute is as to whether the goods supplies to SEZ Developers without payment of duty are to be treated as "exempted....