TaxTMI 
TaxTMI 
2018 (4) TMI 468
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....to developers in Special Economic Zone between January 2008 and December 2008. According to the central excise authority CENVAT credit had been availed on input/input service used for manufacture of exempted goods cleared to developer of Special Economic Zone and in the absence of separate records being maintained for inputs/input service procured in common for dutiable and exempted goods. The original authority dropped proceedings which was upheld by the first appellate authority leading to this appeal by Revenue. 2. Both the lower authorities have extensively elaborated upon the reasons for not subjecting the respondent to the said liability among which are that circular no. 29/2006-CE dated 27th December 2006 of Central Board of Excise ....
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....uary 2009 and such incorporation was prospective. Echoing the grounds of appeal that the lower authorities had erred in considering these to be exports, it is contended that, if it were so, there was no requirement to either incorporate supplies to developer later or for listing supplies to units separately in rule 6(6) of CENVAT Credit Rules 2004 from the beginning. 4. Learned Counsel for the respondent submits that it is the intention of State policy to exempt supplies to Special Economic Zone on par with exports and that the absence of specific exclusion in rule 6(6) till 31st December 2008 should not impede implementation of the policy of the State. It is also argued that supplies to Special Economic Zone - both developers and units - ....
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....o designate supplies effected to developers of Special Economic Zones as exports. 6. Notwithstanding the notification of the Special Economic Zone Act, 2005, the enumerated list in rule 6(6) of CENVAT Credit Rules, 2004 continued without change. The new statute created a separate category of developer of Special Economic Zones who were entitled to the same exemptions from duties of customs, central excise and tax on service as units in these zones. Under this law, supplies effected to both unit and developers were brought within the definition of exports; therefore, with the overriding effect that the Special Economic Zones Act, 2005 had, the supplies to units and developers of Special Economic Zones units are exports for the purpose of ru....