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TMI Blog2021 (3) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... different or that the services are not specified services cannot sustain and requires to be set aside. Rejection of amount of ₹ 9,841/- - Rejection of refund of SBC and KKC - HELD THAT:- On perusal of the records, it is seen that all these invoices are prior to 2016. The amendments introduced in Notification No.12/2013-ST so as to exempt SBC KKC have come into effect only on 3.2.2016 and 1.6.2016 . For this reason, the authorities below have rightly rejected the refund claim with regard to SBC KKC - Rejection of ₹ 9,841/- with regard to SBC and KKC respectively is therefore upheld. Appeal allowed in part. - Ms. Sulekha Beevi C.S., Member (Judicial) Shri Raghavan Ramabhadran, Advocate Ms. Krithika Jaganathan, Advocate for the Appellant Ms. T. Usha Devi, JC (AR) for the Respondent ORDER The brief facts of the case are that the appellant, a unit under Special Economic Zone, Gangaikondan are the holder of Service Tax Registration No.AACCN5773ASD002. They had filed two refund claims with the jurisdictional Assistant Commissioner for an amount of ₹ 1,27,11,493/- ₹ 1,19,11,399/- respectively, under Notification No.40/2012-ST, dated 20.06.2012 as amended by Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime limit prescribed in para 3 (III) (e) of Notification No.12/2013-ST dt. 1.7.2013. It is his case that the corporate office of Alliance Tyre Group (ATC) is registered as an Input Service Distributor (ISD) for distribution of credit which are commonly used amongst various units. The factory located in Tirunelveli is a SEZ Unit (appellant herein) which has obtained separate service tax registration. The appellants had claimed such service tax distributed by its input service distributor registration office at Mumbai for services received at Mumbai (ISD) which is common for all the units of Air India including appellant SEZ unit. The authorities below rejected the claim stating that the claim is filed beyond the period of one year from the date of payment of service tax as prescribed in para 3 (III) (e) of Notification No.12/2013-ST. In fact, with respect to the refund in regard to the credit distributed to the appellant, the relevant document is the invoices issued by the ISD located at Mumbai. The department has computed the period from the date of payment of service tax by Mumbai office. However, when the one year period is computed from the date of receipt of invoice document as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of the CESS also. Hence once the service tax is exempted then the Cess attached to the same should also be exempted. He also referred that with effect from 3.12.2016 amendments were brought forthwith in Notification No.12/2013 to grant refund of SBC as well as KKC. 2.5 With regard to denial of refund of ₹ 8469/- holding that the classification shown in the invoices is Event Management Service, he submitted that, according to the appellant, it is supply of tangible goods service. As per the SEZ Act, 2005 the only condition for refund / exemption of service tax is that services should be used for authorized operations. Whether exemption can be denied stating that the services are not specified services was the same issue that was analyzed in the case of GMR Aero Space Engineering Ltd. (supra). The decision in the said case would apply and the rejection on this ground is against law. 2.6 In Appeal ST/40250/2019, ₹ 1,93,917/- has been denied stating that the service provider has issued invoices under Event Management Service and that the said service is not a specified service. For the very same reason ₹ 51,381/- also has been denied. Similarly, ₹ 22,500/- has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity; (ii) promotion of exports of goods and services; (iii) promotion of investment from domestic and foreign sources; (iv) creation of employment opportunities; (v) development of infrastructural facilities; and (vi) maintenance of sovereignty and integrity of India. The areas falling within the Special Economic Zone may be demarcated into (i) processing area for the manufacture of goods or rendition of services; (ii) area for trading or warehousing purposes; and (iii) non processing areas, other than those covered by the first two items. 19. Under Section 7 of the Act, any goods or services exported out of or imported into or procured from the Domestic Tariff Area, are exempt from payment of taxes and duties under all enactments specified in First Schedule. Under Section 15 of the Act, any person intending to set up a unit for carrying on the authorised operations in a Special Economic Zone may submit a proposal to the Development Commissioner. He must, in turn, send the proposal to the Approval Committee. The proposal may be approved by the Committee with or without modifications or it can be rejected. 20. Section 26 of the Act (Central) entitles every Developer or Entrepreneur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the effect that the services consumed within the SEZ for carrying out authorised operations are exempt from the levy of service tax, (4) that the 2nd petitioner is the Developer of GMR Aviation SEZ, as borne out by a certificate dated 31-5-2010 and a Letter of Approval dated 31-5-2010; (5) that as a Co-Developer, the 2nd petitioner entered into a sub-lease agreement with the petitioner on 1-6-2010, for rendering the services of lease of land, supply of electricity and supply of water and (6) that the services so rendered are by a Co-Developer to a Developer, which is a unit located in the SEZ. 18. In the light of the above admitted facts, the only question that arises for consideration is as to whether the availability of exemptions under Section 26 of the SEZ Act would depend not only upon the terms and conditions prescribed under Section 26(2), but also upon the terms and conditions prescribed in the notifications issued under various enactments such as Customs Act, 1962, Customs Tariff Act, 1975, Central Excise Act, 1944, Central Excise Tariff Act, 1985, Finance Act, 1994 and Central Sales Tax Act, 1956 etc., enlisted in clauses (a) to (g) of sub-section (1) of Section 26 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioners would be entitled to the exemptions. 26 . Having taken note of the provisions of the SEZ Act and Rules, let us have a look at the Finance Act and the relevant notifications. Section 93 of the Finance Act, 1994 reads as follows : 93. Power to grant exemption from service tax (1). (1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax leviable thereon. (2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt any taxable service of any specified description from the payment of whole or any part of the service tax leviable thereon, under circumstances of exceptional nature to be stated in such order. 27. A look at Section 93 of the Finance Act, 1994 would show that it has nothing to do with the units located in a SEZ. Section 93 is a general power of exemption available for the benefit of all and sundry. In fact, Section 93 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (2) of Section 26. The word prescribe is verb. Generally no enactment defines the word prescribe . But the SEZ Act 2005 defines the word prescribe under Section 2(w) to mean the rules framed by the Central Government under the SEZ Act, 2005. The space is also not left unoccupied, as the Central Government has issued a set of Rules known as the Special Economic Zones Rules, 2006 , wherein the Central Government has prescribed the terms and conditions for grant of exemptions under Rule 22. Therefore, there is no question of comparing the terms and conditions prescribed in Rule 22 with the terms and conditions prescribed in the notifications issued under any one of five enactments listed in Section 26(1) to find out whether there was any inconsistency. . . . . 33 . The word prescribe is used in the present tense in Section 26(2) and in the past tense in Section 7. Both will have the same meaning as assigned to the word under Section 2(w). The moment a set of rules is issued either in respect of matters covered by Section 7 or in respect of matters covered by Section 26(1), there is no scope for invoking any other law for imposing any other condition. 34. The benefit of exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X
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