9911796707
TMI Blog2021 (6) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... F INDIA AND OTHERS [ 2019 (8) TMI 748 - TELANGANA AND ANDHRA PRADESH HIGH COURT ]. The Division Bench of the Tribunal in the case of M/S DLF ASSETS PVT. LTD. VERSUS THE COMMISSIONER, SERVICE TAX, DELHI I [ 2020 (11) TMI 35 - CESTAT NEW DELHI ]. It was held that the conditions of the notification cannot be pressed into application to deny the refund to a SEZ Unit. The rejection of refund on the ground of limitation cannot sustain - Appeal allowed - decided in favor of appellant. - Ms. Sulekha Beevi C.S, MEMBER (JUDICIAL) Shri R. Sai Prasanth, Advocate for the Appellant Ms. Sridevi Taritala, Authorized Representative for the Respondent ORDER The appellant-Unit is functioning in SEZ area manufacturing brake systems and related parts of motor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of Paragraph 3 (III)(e) of the impugned notification. For SEZ units like in case of the Appellant, Section 26(1)(e) of the SEZ Act grants exemption from payment of Service Tax on taxable services which are used to carry on authorized operations in a SEZ. In terms of Section 26(2) of the SEZ Act, such an exemption shall be subject to terms and conditions as the Central Government may prescribe. The term 'prescribed' is defined under Section 2(w) of the SEZ Act, to mean prescribed by the Rules made by the Central Government under the SEZ Act. Rule 22 of the Special Economic Zones Rules, 2006 ('SEZ Rules') prescribes the terms and conditions for availing exemptions for authorised operations. On a combined reading of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power of exemption available in respect of all taxable services; that Section 26(1) is a special power of exemption under a special enactment dealing with a unit in a special economic zone; that therefore, the notifications issued under Section 93 of the Finance Act, 1994 cannot be pressed into service for finding out whether a unit in a SEZ qualifies for exemption or not. Reliance is also placed on the decision of this Hon'ble Tribunal in the case of M/s. ATC Tyres Pvt. Ltd. v. Commissioner of GST Central Excise, [2021-VIL-106-CESTAT-CHE-ST]. wherein the exemption was denied inter alia on the ground that the claim was filed beyond the period of limitation prescribed in terms of Paragraph 3(III)(e) of the impugned notification (as recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TAT-MUM-ST](Paragraph-6). 3.2 It is submitted by the counsel that the time limit prescribed in the impugned notification is not applicable to the present case where payment has been made under reverse charge. The impugned order has held that the refund claim ought to be filed within the time limit stipulated in Paragraph 3(III)(e)of the impugned notification, viz., within one year from the end of the month in which actual payment of service tax was made by SEZ Developer or Unit to the registered service provider. 4. The learned Authorised Representative Ms. Sridevi Taritala supported the findings in the impugned order. 5. The issue that arises for consideration is whether the refund claim filed by the appellant is time-barred. The Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay prescribe the manner in which, and the terms and conditions subject to which, the exemptions shall be granted to the Developer under sub-section(1) but what is important to notice, and as was also observed by the Andhra Pradesh High Court, the word prescribe would mean prescribed by rules made by the Central Government under the SEZ Act, in view of the definition of prescribed under section 2(w) of the SEZ Act. The Notification dated March 3, 2000, which has been issued under section 93 of the Finance Act, therefore, has no application. This Tribunal in the case of M/s. ATC Tyres Pvt. Ltd., Vs Commissioner of GST CE, Tirunelveli reported in 2021 VIL 106 CESTAT CHE ST had considered the very same issue of limitation mentioned in the Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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