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2019 (4) TMI 637 - HC - VAT and Sales TaxDeveloper and codeveloper of an SEZ - exemption from payment of tax - individual industrial unit - Section 7(6) of HVAT Act, 2003 and 11(1)(i) read with Section 19(i) of HSEZ Act, 2005 - time limitation - Held that - A perusal of Section 7(6) of the Act shows that only an individual industrial unit undertaking the activity of setting up of the unit in a SEZ area has been exempted from payment of tax and not a developer or co-developer of a SEZ. According to Section 11(1)(i) of the HSEZ Act, 'any goods exported out or imported into the SEZ have been exempted from payment of any tax duty, fees, cess or any other levies under any existing State Law including the Act.' The Tribunal had noticed that the developer or co-developer of a SEZ has not been exempted from payment of tax under the Act by Section 7(6) of the Act and only an individual unit/dealer has been exempted for setting up of the unit in SEZ area. The Tribunal while setting aside the observations of the appellant as recorded in para 3 (iii) of the clarification order issued under Section 56(3) of the Act, had recorded that a developer and co-developer of an SEZ are entitled for exemption from payment of tax under the Act by virtue of Section 11(1)(i) of the HSEZ Act - No illegality or perversity could be pointed out by the learned counsel for the appellant in the aforesaid conclusion recorded by the Tribunal which may warrant interference by this Court. No question of law arises in this appeal. Condonation of delay in filing appeal - time limitation - Held that - Since the appeals were barred by time, the applications under Section 5 of the Limitation Act, 1963 were filed for condonation of delay in filing the appeals - no ground is made out for condonation of delay in filing the appeals. Appeal dismissed - decided against appellant.
Issues involved:
1. Interpretation of Section 7(6) of the Haryana Value Added Tax Act, 2003 regarding exemption from VAT for SEZ developers. 2. Conflict between the Central Special Economic Zone Act, 2005 and the Haryana Special Economic Zone Act, 2005 regarding tax exemptions for developers. 3. Application of Section 11(1)(i) of the Haryana Special Economic Zone Act, 2005 in granting tax exemptions to SEZ developers. Detailed Analysis: 1. The judgment dealt with the interpretation of Section 7(6) of the Haryana Value Added Tax Act, 2003, which exempts dealers from paying VAT for goods used in setting up units in Special Economic Zones (SEZs). The court noted that the exemption applies only to individual industrial units and not to developers or co-developers of SEZs. This distinction was crucial in determining the tax liability of SEZ developers under the Act. 2. The judgment also addressed the conflict between the Central Special Economic Zone Act, 2005 and the Haryana Special Economic Zone Act, 2005 regarding tax exemptions for developers. Specifically, the court examined whether the Central Act's provisions override those of the Haryana Act, especially concerning exemptions for developers and co-developers in SEZ areas. This conflict raised questions about the applicability of tax exemptions to different entities involved in SEZ development. 3. Furthermore, the judgment analyzed the application of Section 11(1)(i) of the Haryana Special Economic Zone Act, 2005 in granting tax exemptions to SEZ developers. The court considered whether the language of this provision extends the exemption to goods exported or imported into SEZs, including the activities undertaken by developers and co-developers within the SEZ area. This analysis was crucial in determining the scope of tax exemptions available to developers under the Haryana Act. In conclusion, the judgment dismissed the appeals challenging the tax liability of SEZ developers, emphasizing that the exemptions under the Haryana Value Added Tax Act, 2003 apply to individual industrial units and not developers or co-developers of SEZs. The court's detailed analysis of relevant provisions and legal interpretations clarified the tax obligations of different entities involved in SEZ development, highlighting the importance of statutory provisions in determining tax liabilities in such cases.
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