2013 (10) TMI 339

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.... a unit situated in SEZ, was exempted from payment service tax for the period from 03/03/2005 to 20/05/2005, as a result of amendment carried on in the Notification No.15/2009-ST dated 20/05/2009 to Notification No.9/2009-ST dated 03/03/2005. It is the case of Revenue that during the period from 03/03/2005 to 20/05/2009, the appellant was required to discharge service tax liability and follow refund procedure prescribed under Notification No.09/2009-ST. 3. Aggrieved by the above order of the adjudicating authority, the appellant filed this appeal claiming that by virtue of Sec. 26 (1)(e) of the SEZ Act, 2005 (2005 Act) read with Rule 31 of SEZ Rules, the appellant was always exempt from payment of service tax. Shri V. Agarwal (Advocate) ....

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....services were provided inside SEZ. Under Notification No.15/2009-ST dated 20/05/2009, exemption from payment of service to the service providers was made available by a suitable amendment in proviso (c) of para 1 of Notification No.9/2009-ST dated 03/03/2009 for the services provided inside SEZ. Before this amendment also, exemption was available to the service recipient by way of refund by the service recipient subject to certain conditions. In this regard, appellant has relied upon the judgment of Tata Consultancy Services Ltd. vs. CCE & ST (LTU) Mumbai (supra), under which it was held that even if a service provider was not required to pay duty as per the amended provisions of Notification No.9/2009-ST but paid for some reasons then the ....

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....rvice tax, remitted by taxable service providers in relation to the taxable services provided to a unit in a SEZ. On this harmonious construction, the immunity to service tax provided under Section 7 or 26 of the 2005 Act cannot be so interpreted as to be eclipsed the procedural prescriptions of Notification No.9/2009 or 15/2009. These notifications are calibrated to enable recipients of taxable services (exempt from liability to tax under the provisions of the 2005 Act), to claim refund of the service] tax, wherever assessed and, collected by Revenue or remitted otherwise by the taxable service provider, inadvertently. Considered in the light of this analysis, the substituted provisions, of clause/sub-paragraph 'C' of Notification No.15/20....