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TMI Blog2024 (5) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... the services provided by the Appellant were used in authorized operations of recipient SEZ units. The Hon ble Supreme Court has consistently held that the eligibility clause of exemption Notification has to be given strict meaning of which the Notifications should be interpreted in terms of its language and once an Assessee satisfies the eligibility clause, the exemption clause may be construed liberally. Thus, an eligibility criteria deserves a strict construction, although construction of a condition thereof may be given a liberal meaning - Hon ble Supreme Court in the case of COMMISSIONER OF CUSTOMS (IMPORT) , MUMBAI VERSUS M/S. DILIP KUMAR AND COMPANY ORS. [ 2018 (7) TMI 1826 - SUPREME COURT] held that If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory requirements of those conditions must be obeyed or fulfilled exactly, thought at times, some latitude can be shown, if there is failure to comply with some requirements which are directory in nature, the non-compliance of which would not affect the essence or substance of the notification granting exemption. Since there was substantial compliance of substantive c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant M/s. Pristine Facility & Management Services Private Limited, Plot No.189, UK-II, Echotech-III, Greater Noida, Gautam Budha Nagar, U.P. for the period from 2010-11 to 2014-15 (upto Dec-14), which is recoverable from them with Interest under proviso to Section 73(1) and 75 of the Finance Act, 1994. (2) Penalty amounting to Rs.61,03,106.00 (Rupees Sixty One Lakh Three Thousand One Hundred and Six only) is imposed under proviso to Section 78 of the Finance Act, 1994. (3) Penalties imposed under Sections 77(1)(a) and 77(2) of the Finance Act, 1994 are waived. The instant appeal is disposed of in above terms." 4. Being aggrieved, the Appellant has filed the present appeal before this Tribunal. 5. Heard both sides and perused the appeal records. 6. It is the case of the Appellant that there is no dispute that the services have been provided to SEZ units; SEZ units to whom services have been provided were duly authorized by UAC to receive certain services without payment of service tax for use in the authorized operations; SEZ units were issued duly approved list of specified services in proper prescribed form; there is no dispute that the services provided by the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices required for authorized operations; (b) Ab-initio exemption shall be allowed subject to the following procedures. (i) A declaration shall be furnished in form A-1 verified by the specified officer of the SEZ along with list of specified services; (ii) On receipt of the declaration the authorization shall be issued by the jurisdictional Deputy/Assistant Commissioner of Central Excise to the SEZ unit or the Developer in Form A-2; (iii) SEZ unit or developer has to provide a copy of said authorization to the provider of specified services; (iv) On the basis of authorization the service provider shall provide specified services to the SEZ unit or Developer without payment of Service Tax; (v) SEZ unit or Developer has to file quarterly report in Form A-3 furnishing details of services received without payment of Service Tax; (vi) An undertaking in Form A-1 is to be furnished by the SEZ unit or Developer that in case the specified services on which exemption has been claimed are not exclusively used for authorized operations, it shall pay to the Government an amount claimed by way of exemption from Service Tax including cesses with interest on delayed payment thereof. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gislature. Whether the Legislature intended to apply the law in a given case; whether the Legislature intended to exclude operation of law in a given case; whether Legislature intended to give discretion to enforcing authority or to adjudicating agency to apply the law, are essentially questions to which answers can be sought only by knowing the intention of the legislation. Apart from the general principles of interpretation of statutes, there are certain internal aids and external aids which are tools for interpreting the statutes. 25. We are not suggesting that literal rule de hors the strict interpretation nor one should ignore to ascertain the interplay between "strict interpretation" and "literal interpretation". We may reiterate at the cost of repetition that strict interpretation of a statute certainly involves literal or plain meaning test. The other tools of interpretation, namely contextual or purposive interpretation cannot be applied nor any resort be made to look to other supporting material, especially in taxation statutes. Indeed, it is well-settled that in a taxation statute, there is no room for any intendment; that regard must be had to the clear meaning of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration? The Constitution Bench answering the said question concluded that a manufacturer qualified to seek exemption was required to comply with the preconditions for claiming exemption and therefore is not exempt or absolved from following the statutory requirements as contained in the Rules. The Constitution Bench then considered and reiterated the settled principles qua the test of construction of exemption clause, the mandatory requirements to be complied with and the distinction between the eligibility criteria with reference to the conditions which need to be strictly complied with and the conditions which need to be substantially complied with. The Constitution Bench followed the ratio in Hansraj Gordhandas case (supra), to reiterate the law on the aspect of interpretation of exemption clause in para 29 as follows - "The law is well-settled that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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