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TMI Blog2023 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... e could not place on record as to which are the conditions that are prescribed by the Central Government under sub-section (2) of Section 26 of SEZ Act, 2005. Further, it is noted that the said Notifications such as 04/2004, 09/2009 and 17/2011 are providing exemptions to the units under SEZ. Here the question is which provision requires the appellant who is a developer of SEZ to pay service tax. The conditions under the said notifications either decide entitlement of the units for exemption, but the provisions under said Section 26 provide that the units are exempted from levy of service tax when they receive services. So, clear interpretation provides that when the present appellant has provided services only to the units under SEZ, the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nits which were not having SEZ status, units which did not have approved list of services and units availing services before the approval was accorded. It appeared to Revenue that the appellant had violated conditions of Notification No. 04/2004-ST dated 31.03.2004 and subsequently conditions specified under Notification No. 09/2009-ST dated 03.03.2009 and afterwards conditions of Notification No. 17/2011-ST dated 01.03.2011 and thereby the appellant was not entitled for any exemption and as a result, the appellant was required to pay service tax of Rs.25,90,96,248/- for the period from October 2007 to March 2012 on renting of immovable property service provided by the appellant to the units as classified herein above. Therefore, appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said order, appellant is before this Tribunal. 3. Heard the learned Chartered Accountant on behalf of the appellant. Learned Chartered Accountant has submitted that the appellant is an SEZ developer and the Government of India through a Notification dated 13.04.2007 has accorded approval for development and operation of the sector specific special economic zone for information technology and information technology enabled services at Powai village in Mumbai and as a result, the appellant is an SEZ developer since 13.04.2007. He has further submitted that as per Rule 11 of SEZ Rules, 2006, a developer cannot sell the land in SEZ and can allot the land on lease basis to a person desiring to create infrastructure facilities for use by prosp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der SEZ is entitled to receive services without payment of tax. In respect of such units which were not having approval for the list of services, he has submitted that the approval was granted subsequently to the various units and that the notification does not require prior approval and relied on the judgment of the Tribunal in the case of Essar Oil Ltd. reported at 2006 (197) ELT 450 (Tri.-Mumbai). Further, he has submitted that the above show cause notice is time barred. First show cause notice was issued on 27.03.2013 invoking extended period of limitation whereas the appellant s service tax registration was repeatedly audited by Revenue. 4. Heard the learned AR. Learned AR has submitted that sub-section (2) of Section 26 of said SEZ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (1) of Section 26 of SEZ Act, 2005. We note that clause (e) of sub-section (1) of Section26 of SEZ Act, 2005 provides that every developer and the entrepreneur shall be entitled to the exemption from service tax under Chapter V of Finance Act, 1994 on taxable services provided to a developer or units to carry on authorized operations in a special economic zone. The said provision is subject to the provisions of sub-section (2) of same section. Sub-section (2) provides that the Central Government may prescribe the manner in which the terms and conditions subject to which the exemptions, concessions and drawback or other benefits shall be granted to developer entrepreneur under said sub-section (1). Plain reading of above two sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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