In Excise Appeal No. 118 of 2012 - CESTAT - CESTAT (Kolkata) rules benefit of Notification No. 50/2008-CE(NT) applicable retrospectively; sets aside excise duty demanded from Pareshnath Re-Rolling Mills
Members Ashok Jindal (Judicial) & K. Anpazhakan (Technical) [31-05-2023]

Read Order: Pareshnath Re-Rolling Mills Ltd v. Commr. of CGST & CX, Bolpur Commissionerate

Chahat Varma

New Delhi, June 3, 2023: The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal has ruled that the benefit of Notification No. 50/2008-CE(NT) would be applicable retrospectively.

The brief facts of the case were that Pareshnath Re-Rolling Mills Ltd. (appellant) had supplied M. S. Angles, Channels, Joists etc. to the SEZ developer M/s. Jindal Stainless Ltd., without payment of duty. The Department considered these supplies as exempted supplies and demanded 10% of the value of the goods cleared to SEZ developer on the ground that the said clearance was not covered under Rule 6 (6) (1) of the Cenvat Credit Rules, 2004. The appellant contended that Notification No.50/2008-CE(NT) dated 31.12.2008 eliminated the distinction between SEZ Unit and developer and the benefit of the Notification had been extended to SEZ developers retrospectively and hence the demand confirmed was not sustainable.

The Tribunal based its decision on the case of Union of India vs. Steel Authority of India Ltd. [LQ/ChatHC/2013/184].

Holding the appellant eligible for the benefit of Notification No. 50/2008-CE(NT) for the period covered in the impugned order, the demand confirmed in the impugned order was set aside.