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supply to sez developer

vasudev (ca ) (153 Points)

05 December 2008

my query is if the supply of goods without excise duty is made to a sez "developer"(not a unit) is Rule 6 of cenvat credit is applicable where by either credit taken on raw material or 10%of sale value is payable?

as per noti no:39/2002 ce it says sez and sez developer are at par in relation to excise exemption.

any specific case law or material is available?

urgent

thankss

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2 Replies

RAMESH PRAJAPATI (SERVICE) (52 Points)
Replied 12 December 2008

There no specific case law but It is clearly mentioned in the Rule 6 of Central Excise Rules that The provisions of sub- rule (1), sub-rule (2), sub-rule (3) and sub-rule (4) shall not be applicable in case the exempted goods are either cleared to a unit in a free trade zone or cleared to a unit in a special economic zone and as per noti no:39/2002 ce ,both ,unit and developer are equal for excise exmption. So there is no question to disallow cenvat credit or reversal of an amount equal to 10% of sale value.

This is the reason no case law.

Gurumalla Swamy P (Service) (66 Points)
Replied 02 January 2009

Pls refer below notification,

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 50 / 2008-Central Excise (N.T.)

New Delhi the 31^st December, 2008

G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1. (1) These rules may be called the CENVAT Credit ( Third Amendment )Rules, 2008.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the CENVAT Credit Rules, 2004, in rule 6, in sub-rule (6), for clause (i), the following clause shall be substituted, namely:-

“(i) cleared to a unit in a special economic zone or to a developer of a special economic zone for their authorized operations; or” .

[F.No. 267/52/2008-CX.8]

Sd/-

(Rahul Nangare)

Under Secretary to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), notification No. 23/2004-Central Excise (N.T.),dated the 10^th September,2004,vide number, G.S.R. 600 (E), dated the 10^th September 2004, and was last amended by notification No. 48/2008-Central Excise(N.T) dated the 5^th December 2008, vide number ,G.S.R. 836 (E) , dated the 5^th December 2008.

Thanks & Regards

Gurumalla Swamy