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TMI Blog2015 (7) TMI 823X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner unit also furnished a declaration, in Form A1 verified by the Specified Officer of the SEZ along with the list of specified services. Once, the SEZ unit secures the approval of the 'Approval Committee' to the list of the services on which the SEZ unit wishes to claim exemption from service tax and furnishes a declaration, in Form A1 verified by the Specified Officer of the SEZ, it is rightly submitted on behalf of the petitioner that the respondent No.2 or for that matter, any Jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise is enjoined with a duty to issue the authorization, in Form A2. It is clear from Notification No.12 of 2013, under which the petitioner unit has exercised an option not to pay the service tax ab initio, that the respondent No.2 was obliged to issue the authorization, in Form A2 to the petitioner unit in the circumstances of the case. Mere issuance of Form A2 by the respondent No.2 would not absolve the petitioner unit of its liability to pay the service tax and cesses along with interest on delayed payment, if it is subsequently found that the petitioner unit has not used the services exclusively for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Government of India, Ministry of Finance in the year 2009, all SEZ units were exempted from payment of service tax utilized for the authorized operations of the SEZ units. Under the Notification of the year 2009, an SEZ unit was required to pay the service tax initially and then seek its refund by claiming exemption. A notification was issued by the Government, bearing Notification No.17 of 2011 providing for an option to the SEZ units not to pay the service tax ab initio. Certain conditions were required to be complied while availing ab initio exemption from payment of service tax. Under Clause 2 of Notification No.12 of 2013, the SEZ unit was required to get the list of taxable services for the authorized operations of the SEZ unit, approved by the 'Approval Committee', a statutory body constituted under the provisions of Section 13 of the Act of 2005. The SEZ unit was required to furnish a declaration in Form A1, verified by the Specified Officer of the SEZ along with the list of specified services. As per Notification No.12 of 2013, on the basis of the declaration made in Form A1, an authorization was liable to be issued by the Jurisdictional Deputy Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r unit on the ground that the petitioner unit was involved in the activity of manufacture and sale of electricity and as sale of electricity did not fall within the list of specified services, the petitioner was not entitled to Form A2. It is submitted that the appellate Authority, i.e. the Commissioner (Appeals) Central Excise and Customs, Nagpur has held in the appeals filed by the Petitioner unit that an unit would be required to sell the goods that have been produced and the observation of the subordinate authority that the sale of electricity is a separate business, is incorrect. It is stated that the decision of the appellate authority, dated 29/10/2013 was accepted by the respondent No.2, inasmuch as the respondent No.2 has observed in the communication issued to the petitioner unit that production and sale of electricity constitute only one business. It is submitted that on a reading of Notification Nos.17 of 2011 and 12 of 2013, it is clear that the respondent No.2 is obliged to issue an authorization in Form A2 on the basis of the declaration made by the petitioner in Form A1. It is stated that it is apparent from the notifications and also from the provisions of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties and on a perusal of the concerned notifications, it appears that the respondent No.2 was not justified in refusing authorization to the petitioner, in Form A2 for availing ab initio exemption from payment of service tax. On a perusal of the notifications, it is clear that the petitioner had an option to either pay the service tax in advance or not to pay the same, subject to the conditions provided in the notifications. For seeking ab initio exemption, the petitioner unit was required to secure the approval of the list of services, as are required for the authorized operations of the unit on which the unit desires to claim exemption from service tax from the 'Approval Committee'. The Approval Committee constituted under the provisions of Section 13 of the Act of 2005 and which comprises of responsible officers had granted approval to the list of services for which the petitioner desired to claim exemption from service tax. Admittedly, the petitioner unit also furnished a declaration, in Form A1 verified by the Specified Officer of the SEZ along with the list of specified services. Once, the SEZ unit secures the approval of the 'Approval Committee' to the lis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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