9911796707
TMI Blog2025 (2) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... of Finance Act, 1994 for rendering of 'rent-a-cab' service' between April 2006 to March 2009, along with interest under section 75 of Finance Act, 1994, besides imposition of penalty of like amount under section 78 of Finance Act, 1994 is under challenge. 2. The appellant had been contracted to transport employees from place of stay to a unit located in the Special Economic Zone and vice- versa and contended that the exemption afforded by section 26 of Special Economic Zone Act, 2005 excluded them of any liability under Finance Act, 1994. Nonetheless, the adjudicating authority, unwilling to accept the entitlement in terms of notification [no. 4/2004 dated 31st March 2004]. '...... the Central Government being satisfied that it is neces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in rendered service of tour operator for transportation of employees of a unit situated in SEZ. If that be so the ratio of the judgment of the Tribunal, as reproduced herein above, will apply. Accordingly, the impugned orders are set aside and the appeal is allowed.' 4. Reliance was further placed on the decision of the Hon'ble Supreme Court in Union of India v. Kamalakshi Finance Corporation Ltd [1991 (55) ELT 433 (SC)] '8. We have dealt with this aspect at some length, because it has been suggested by the learned Additional Solicitor General that the observations made by the High Court, have been harsh on the officers. It is clear that the observations of the High Court, seemingly vehement, and apparently unpalatable to the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular direction. It is also seen that the rejection was based upon a notification [ no. 4/2004 dated 31st March 2004 ] which preceded the Special Economic Zones Act, 2005. Section 51 of Special Economic Zones Act, 2005 renders the provisions of that law to prevail over any other statute in the event of conflict. Consequently, the outright exemption afforded by section 26 of Special Economic Zones Act, 2005 would prevail over any instruction to the contrary and in the context of undeniable fact of one end of the impugned service having been within the Special Economic Zone, must be examined for conformity. As the adjudicating authority has relied upon an outdated notification the final outcome not tenable warranting a fresh appreciation of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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