2008 (10) TMI 222

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....t Kandla special Economic Zone during the disputed period 1-10-2000 to 27-3-2001 without payment of Excise Duty. Prior to 1-10-2000, respondent's customers were located in the same area, but covered under Kandla Free Trade Zone and availing benefit of Notification No. 126/94 C.E. dated 2-9-1994. The status of Kandla Free Trade Zone was changed to special Economic zone by a resolution of Ministry of Commerce and Industries, and clearances to these units situated were granted benefit of exemption vide Notification No. 52/2000 dated 19-10-2000. Consequently, adjudicating authority held that benefits under Notification No. 126/94 dated 2-9-1994 was not available to the clearances made to these units located in Kandla Special Economic Zone. Due ....

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....Zone. He would submit that supplies made by respondent were to the units located in the areas as is mentioned in rule 2(8) of Central Excise Rules, 1944. He draws our attention to Notification No. 12/2001-CE. (N.T.), and submits that the survey numbers indicated in this notification are the same as is mentioned in the rule 2(8) of CER, 1944. 5. We have considered the submissions made in detail by both sides and perused the records. The issue involved in this case is whether respondent is required to reverse an amount of 8% of the value of goods supplied to units located in KFTZ during the period November, 2000 to March, 2001. Prior to November, 2000, supplies to KFTZ was exempted and assessee was not required to reverse 8% of the value o....

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....td. 27-3-2001 is not contemplated for the claimed benefit. In accordance with provision Rule 57CC of Central Excise Rule no credit of specified shall be allow on such quantity of inputs which is used in the manufacture of final products which are exempted, chargeable to nil rate of duty except when the final product, are inter alia, cleared to 100% EOU. There is no dispute that the consignee issuing CT-3 certificate for acquiring disputed goods was a 100% EOU. Earlier qualifying for benefit contemplated for Free Trade Zone unit at Kandla in terms of Notfn. No. 126/94 and later as Special Economic Zone. The provisions of Rule 57CC are in the nature of procedural requirement in regulation adjustment of credit on inputs use in exempted for fin....