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Judgment
S. No.,Description of inputs,Description of final products
(1),(2),(3)
1.,"All goods falling within the Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986),
other than the following, namely, -
(i) goods classifiable under any heading of
Chapter 24 of the Schedule to the said Act;
(ii) goods classifiable under heading Nos.
36.05 or 37.06 of the Schedule to the said
Act;
(iii) goods classifiable under subheading
Nos. 2710.11, 2710.12, 2710.13 or 2710.19
(except Natural gasoline liquid) of the
Schedule to the said Act;
(iv) high speed diesel oil classifiable under
heading No. 27.10 of the Schedule to the said
Act.","All goods falling within the Schedule
to the Central Excise Tariff Act, 1985
(5 of 1986), other than the following,
namely,-
(i) goods classifiable under any
heading of Chapter 24 of the Schedule
to the said Act;
(ii) goods classifiable under heading
Nos. 36.05 or 37.06 of the Schedule to
the said Act;
(iii) woven fabrics classifiable under
Chapter 52 or Chapter 54 or Chapter
55 of the Schedule to the said Act.
d. Trichy Distillers and Chemicals Limited Vs C.C.E, Trichy [2018-TIOl-993-CESTAT-MAD]",,
He further submits that consequent upon the orders of the Tribunal, CBIC has also issued Instruction No. 96/85/2015-CX.I dated 07.12.2015. This",,
circular communicated various decisions taken in the Chief Commissioners’ Conference for compliance by all forums. The relevant portion for,,
this case is as follows:,,
B13 - Hyderabad Zone - Scope of exemption- admissibility to intermediate goods used in the manufacture of cement supplied to SEZ units:,,
Issue: Notification No.67/95-CE dated 16-03-1995 provides duty exemption to captively consumed inputs in the manufacture of dutiable,,
final products. Exception to this notification is that this duty exemption is not applicable, if the final products are exempted from duty",,
payment or attract nil rate of duty. An exception to this exception is when clearance of final products is made to a unit in Free Trade Zone,,
(FTZ), a 100 % EOU and a unit in Hardware Technology Park or Software Technology Park. Thus, when final products are supplied to",,
FTZ, EOU etc intermediate products continue to be exempted. Now, FTZ scheme does not exist and existing EPZ/FTZ have been notified as",,
SEZ. The issue is whether the benefit of exemption to the intermediate product is available when final products are supplied to the SEZ. The,,
issue has been discussed in the past tariff conference also but no final view was taken. Show Cause Notices have been issued in the zone on,,
the subject.,,
Discussion & Decision The conference after discussion noted that the issue has been decided by the Tribunal in case of M/s Ultratech,,
Cement and other manufacturers [2015- TIOL-2110-CESTAT-Mad] where the Tribunal decided that benefit of exemption to intermediate,,
products is available when the final products are supplied to SEZ. Hon’ble Tribunal noted that during the relevant period of dispute, no",,
FTZ was in operation and therefore no clearance could be made to FTZ as this was a period after the enactment of SEZ Act on 10.02.2006.,,
Once the SEZ Act came into effect from 10.02.2006, all the units functioning as FTZ were declared as SEZ units. notification no.4/2003-CE,",,
dated 30.03.2003 was issued to convert various FTZs into SEZs. Further, as per the Notes explaining clauses of the Finance Bill, 2007",,
(clause 106), after enactment of SEZ Act, FTZs have become redundant and hence it sought to amend subsection (1) of Section 3 of the",,
Central Excise Act. By virtue of the above amendment, the word FTZ was omitted and substituted with the word SEZ in section 3 of the",,
Central Excise Act, 1944. Consequently, tribunal concluded that now the expression FTZ in the notification no.67/95-C.E. needs to be read",,
as SEZ and the benefit of exemption extended to the intermediate goods when final goods are supplied to SEZ. Conference accepted this,,
view and concluded that benefit of exemption should be extended to the intermediate goods when final goods are supplied to SEZ.,,
Conference also recommended to the Board that notification no 67/95-C.E. should be amended to avoid litigation on the issue.,,
He would, therefore, submit that the issue has been settled by various Benches of the Tribunal and also been accepted by the CBIC. Therefore",,
their appeals may be allowed.,,
Learned DR reiterated the findings of the lower authority. However, he admits that the CBIC has issued the above instruction in favour of the",,
assessee.,,
In view of the above, we find that the issue is no longer res integra and it is settled by various decisions of this Tribunal and also accepted by the",,
CBIC that benefit of exemption Notification No.67/95-CE is available to the intermediate products when the final product is supplied to SEZ units,,
without payment of duty. Accordingly, the appeals are allowed and the impugned orders are set aside with consequential reliefs, if any.",,
(Operative part of this order was pronounced in court on conclusion of the hearing),,