9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 741 - AT - Service TaxExemption from payment of service tax to service provided to Special Economic Zone (SEZ) Unit - denial on the ground that Form A1 was not available with the appellant when the service were provided but was only subsequently received - N/N. 17/2011- ST dated 01.03.2011 - HELD THAT - As per the impugned order there is no dispute that the appellant have provided services to SEZ unit. The exemption under Notification No 17/2011-ST dated 01.03.2011 was denied only on the requirement of submission of Form A1. Though the said form was not submitted at the relevant time but subsequently it was submitted, therefore, compliance of the Notification No. 17/2011 stands made. Moreover, the Section 26 (1) (e) of SEZ Act grants the exemption from payment of service tax in respect of the service provided to the SEZ units. The SEZ Act override the Finance Act, 1994 under which Notification No. 17/2011-ST was issued. On this count also the appellant is legally entitled for exemption from payment of service tax - Accordingly, demand does not sustain. Appeal allowed.
Issues involved:
The issue involved in the present case is whether the exemption under Notification No. 17/2011- ST from payment of service tax to service provider to Special Economic Zone (SEZ) Unit can be denied due to the unavailability of Form A1 at the time services were provided but subsequently received. Details of the Judgment: Issue 1 - Submission of Form A1 for exemption under Notification No. 17/2011-ST: Ms. Shrayashree Thiyagarajan, Learned Counsel for the Appellant argued that the exemption was denied as Form A1 was not available with the appellant at the time of service provision, but was later submitted. She contended that despite this procedural lapse, exemption should not be denied as all services provided to SEZ are otherwise exempted under Section 26 (1) (e) of SEZ Act. The appellant relied on various judgments to support their case. Issue 2 - Compliance with SEZ Act for exemption from service tax: The Tribunal noted that the appellant had indeed provided services to SEZ units, and the exemption under Notification No. 17/2011 was denied solely due to the non-submission of Form A1 at the relevant time. However, the form was subsequently submitted, leading to compliance with the notification. Additionally, Section 26 (1) (e) of the SEZ Act provides exemption from service tax for services provided to SEZ units, overriding the Finance Act, 1994 under which the notification was issued. The Tribunal found that the appellant was legally entitled to the exemption, supported by the judgments cited. Conclusion: After careful consideration of submissions and records, the Tribunal set aside the impugned order, allowing the appeal and ruling in favor of the appellant. The demand for service tax was deemed unsustainable, and the appellant was granted the exemption under Notification No. 17/2011-ST. The judgment was pronounced in the open court on 11.10.2023.
|
