2018 (6) TMI 1351 – KARNATAKA HIGH COURT – TMI – CENVAT Credit – effect of amendment – supply of goods to SEZ – Amendment of Rule 6(6)(i) of Cenvat Credit Rules, 2004, amended in the year 2008 – whether amendment have retrospective or prospective effect? – Held that:- The issue is covered by the decision of the cognate bench of this Court in the case of Commissioner of C. Ex. & S.T., Bangalore –vs- Fosroc Chemicals (India) Pvt. Ltd., [2014 (9) TMI 633 – KARNATAKA HIGH COURT] in which the cognate bench of this Court has held that the Amendment of Rule 6(6)(i) of Cenvat Credit Rules, 2004, amended in the year 2008, has to be given retrospective effect as it was clarificatory in nature and has to be extended to the goods cleared to a “developer” of a Special Economic Zone for their authorized operation.
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No Substantial Question of Law arises for our consideration – appeal dismissed – decided against Revenue. – C.E.A.No.58/2017 Dated:- 20-6-2018 – Dr. Vineet Kothari And Mrs. S. Suja
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e promotion of exports and for matters connected therewith or incidental thereto. Section 53 of the Act declares that a special economic zone shall, on and from the appointed day, be deemed to be a territory outside the Customs territory of India for the purposes of undertaking the authorized operations. The word export has been defined under Act at Section 2(m). According to the definition of the word export, vide Section 2(m)(ii) export means supplying goods or providing services, from the Domestic Tariff Area to a Unit or Developer. Such exports were exempted from duty of central Excise under Section 26 of the SEZ Act, 2005 and consequently application of Cenvat Credit Rules. Section 151 of the Special Economic Zones Act, 2005, overrides the provision of all other laws for the time being in force, notwithstanding anything inconsistent therein with the provision of the Special Economic Zones Act, 2005. This section therefore overreaches and eclipses the provisions of any other law co
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7-12-2006 wherein clause 4 reads as under:- 4. In the light of the aforesaid provisions, with effect from 14-3-2006, Chapter XA of the Customs Act, 1962, the SEZ Rules, 2003, the SEZ (Customs Procedure) Regulations, 2003, and the exemption Notification No.58/2003-C.E., dated 22-7-2003 regarding the supply of goods to SEZ units & SEZ developers have become redundant. Consequently the supplies from DTA to a SEZ unit, or to SEZ developers for their authorized operations inside a SEZ notified under sub-section (1) of Section 4 of the Act, may be treated as in the nature of exports. 14. Therefore, it is clear, the said amendment has to be construed as retrospective in nature and the benefit of Rule 6(6)(i) as amended in 2008 has to be extended to the goods cleared to a developer of a Special Economic Zone for their authorized operations. Therefore, we do no see any merit in these appeals. 15. The substantial question of law is answered in favour of the assessees and against the Revenue.
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