2016 (8) TMI 847 - AT - Service Tax

Refund claim - services availed in terms of Notification No. 12/2013-ST dated 1.7.2013 in developing SEZ - receipt of specified services was not approved at the time when the said services were availed - Held that - it is found that the Notification No. 12/2013 provides the exemption by way of refund. To avail the exemption, the assessee must fulfill the conditions of the notification at the time of availing the services. In the instant case, admittedly the appellants had not got the impugned services approved by the Approval Committee. Hence, at the time of availing services the condition 3(I) of the notification was not fulfilled, therefore, refund cannot be granted. - Decided against the appellant

Summary

Issues: Refund claim rejection based on approval of specified services for SEZ developers under Notification No. 12/2013-ST.

Analysis:
1. The appellant, a SEZ developer, filed a refund claim under Notification No. 12/2013-ST for services availed. The notification required approval by the Approval Committee for specified services. The claim was rejected as services were not approved when availed.

2. Appellant argued no pre-approval condition existed before availing services, citing a Tribunal decision. Claimed similarity with Notification No. 9/2009-ST. Learned AR contended exemption conditions must be met when services are availed, not later.

3. Tribunal noted the distinction between an exemption and refund notification. Emphasized fulfilling conditions at the time of availing services for exemption. As specified services were not approved, condition 3(I) of the notification was not met, leading to dismissal of the appeal.

4. The judgment clarified the necessity of fulfilling notification conditions at the time of availing services for exemption claims. The failure to obtain approval for specified services led to the dismissal of the refund claim. The decision was pronounced on 10.6.2016.