Truform Engineers vs Commissioner Of Central Excise, Nagpur
- CitationAppeal No. E/562/10
Ratio decidendi
The rule this decision rests on
Where goods are cleared to an SEZ developer, the substitution effected by Notification No. 50/2008-CE(NT) applies to such supplies, and the assessee is not required to reverse 10% of the value of the goods cleared under the benefit of Notification 50/08, the position being governed by the Chhattisgarh High Court's ruling that the substitution applies to supplies to SEZ developers even prior to the issue of that Notification. A decision of a High Court is binding on the Tribunal within its jurisdiction, and where a High Court has laid down a rule on the point, a contrary Tribunal decision (here, the Blue Star Ltd. ruling relied on by the Revenue) cannot be followed in preference to it.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out Order-in-Appeal No. SR/34/NGP/2010 dated 22.01.2010 passed by the Commissioner of Customs & Central Excise (Appeals), Nagpur)
For approval and signature: Honble Mr. M.V. Ravindran, Member (Judicial)
1. Whether Press Reporters may be allowed to see No the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the No CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy Yes of the Order?
4. Whether Order is to be circulated to the Departmental Yes authorities?
Truform Engineers Appellant
Vs.
Commissioner of Central Excise, Nagpur Respondent
Appearance:
Shri P.V. Sadavarte, Advocate for the appellant Shri N.N. Prabhudesai, Supdt. (AR) for the respondent
CORAM:
Honble Mr. M.V. Ravindran, Member (Judicial)
Date of hearing : 20.03.2015 Date of decision : 20.03.2015
O R D E R No:..
This appeal is directed against Order-in-Appeal No. SR/34/NGP/2010 dated 22.01.2010.
2. Heard both sides and perused the record.
3. On perusal of the record, it transpires that the issue involved in this case is regarding the confirmation of demand of amount equivalent to 10% of the value of the goods cleared to SEZ developer by availing benefit of Notification 50/08.
4. After hearing both sides and perusing the records, I find that the issue is the same as to whether the goods cleared to SEZ developer is eligible for the benefit of Notification and whether the assessee is required to reverse 10% of the value of the exempted goods or not.
5. In my considered view, the issue is no more res integra as the Division bench of the Tribunal in Sujana Metal Products Ltd. 2011 (273) ELT 112 (Tri-Bang) and Ultra Tech Cement Ltd. 2015 (315) ELT 238 has taken a view which is in the favour of the appellant in this case. It is also to be noted that the Hon'ble High Court of Chattisgarh in UOI vs. Steel Authority of India Ltd. 2013 (297) ELT 166 in their judgment dated 22.04.2013 has held that the substitution by Notification no. 50/2008-CE(NT) will apply for the supply made to SEZ developers even prior to the issue of Notification.
6. Ld. Departmental Representative relied upon the decision of the Tribunal in Blue Star Ltd. 2011 (271) ELT 302 to submit that the supply made to SEZ developer will not fall within the category as supply to SEZ unit.
7. The reliance placed by the Departmental Representative will not carry the case of the revenue any further as the Hon'ble High Court of Chattisgarh in UOI vs. Steel Authority of India Ltd. (supra) is a judgment of the Hon'ble High Court and passed on 22.04.2013. The said ratio is binding on me.
8. Accordingly, in view of the authoritative judicial pronouncement, the impugned order is set aside and the appeal is allowed.
(Pronounced in Court)
(M.V. Ravindran) Member (Judicial)
//SR
3
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