2011 (2) TMI 376 - AT - Service Tax

Waiver of pre-deposit - denial of exemption from service tax to import/export cargo clearance services provided to units located in the SEZ during the period May 2006 to November 2007, in terms of Notification No. 4/2004-S.T., dated 31-3-2004 - In the light of the language of the relevant Section of the SEZ Act, and in the absence of dispute regarding provision of taxable services to SEZ Unit, prima facie case for waiver has been made out and therefore we dispense with the requirement of pre-deposit of the amounts in dispute and stay recovery thereof pending the appeal

Summary

The Appellate Tribunal CESTAT, Chennai heard an application for waiver of pre-deposit of service tax of Rs. 3,63,934/-, including interest and penalty, related to import/export cargo clearance services provided to units in SEZ. The Tribunal found a strong prima facie case for total waiver based on Section 26(1)(e) of the SEZ Act, exempting service tax on taxable services provided to SEZ units carrying out authorized operations. The Tribunal dispensed with the pre-deposit requirement and stayed recovery pending appeal.