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TMI Blog2018 (5) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... s relating to SEZ shall be guided and governed by the provisions contained in SEZ Act and the SEZ Rules. Since, such statutory provisions governing the SEZ are silent about any condition or restriction for claiming the refund of service tax, the notification issued by the Central Govt. in terms of Finance Act, 1994 cannot prescribe any conditions, which are contrary to the SEZ provisions. Therefore, rejection of refund application by the authorities below by placing reliance on the notification dated 3.3.2009 cannot be sustained and is liable to be set aside. Refund allowed - appeal allowed - decided in favor of appellant. - Appeal No. ST/1822/2011-SM - Final Order No. 51683/2018 - Dated:- 4-5-2018 - Hon ble Mr. S.K. Mohanty, Member ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/- paid on the input services during the period May 2009 to November, 2009. Out of such refund amount, the jurisdictional Central Excise authorities rejected the refund claim of ₹ 5,36,934/- on the ground of certain discrepancies/irregularities. Rejection of refund application by the original authority was upheld by the Commissioner (Appeals) vide the impugned order dated 03.08.2011. 3. The ld. Advocate appearing for the appellant submitted that the appellant is exempted from payment of service tax on the services received by its SEZ unit in view of exemption provided under Section 27(1)(e) of the SEZ Act, 2005. He further submitted that the Notification No. 9/2009 as amended, cannot prescribe additional conditions, which are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le services specified in Section 65 of the Finance Act, 1994 should be available to to a developer or a unit for the authorised operations in a Special Economic Zone. 7. On perusal of the provisions contained in Section 26 (2) of the Act read with Rule 31 of the Rules, it reveals that such statutory provisions have not prescribed any conditions/ stipulations for grant of refund of service tax paid on the taxable services for providing SEZ activities. However, in exercise of the powers conferred by sub section (1) of Section 93 of the Finance Act, 1994, the Central Government has issued Notification No. 9/2009-ST dated 3.3.2009 and the amending Notification No. 15/2009-ST dated 20.5.2009, by providing certain conditions for claim of refun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26(1)(e) of the SEZ Act, 2005. The relevant paragraphs in the said decision are extracted herein below: 7. From the provisions contained in Section 26(1)(e) of the SEZ Act, read with Rule 30(10) of the SEZ Rules, 2006, it can be seen that no Service Tax is payable on the services provided by a service provider to a SEZ unit. Further, Sec. 51 of the SEZ Act also makes an over-riding provision that SEZ Act shall have effect even if there is anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any other law. It is accordingly held that Notification No. 9/2009-S.T. and amended Notification No. 15/2009-S.T. have been only issued to operationalize the exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X
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