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Manufacturers allowed Credit on supplies to SEZ Developers As demanded by “Notification No. 50 / 2008-Central Excise (N.T.) 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/- 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 10th September,2004,vide number, G.S.R. 600 (E), dated the 10th September 2004, and was last amended by notification No. 48/2008-Central Excise(N.T) dated the 5th December 2008, vide number ,G.S.R. 836 (E) , dated the 5th December 2008. “ Vide above amendment the words “or to a developer of a special economic zone for their authorized operations” have been added to the said Rule. Since hundreds of show cause notices have been slapped on the manufacturers demanding reversal of credit at the rate of 10 per cent of the value of goods cleared to SEZ Developers ; the Industry has demanded the benefit of the said amendment should be allowed with retrospective effect as the intention of the Government was to allow equal benefits on supplies to SEZ Units as well as Developers and it was merely a case of technical flaw which was used as a weapon by the excise department to demand reversal of credit on clearances to SEZ Developers. Related Story: |
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