2018 (7) TMI 174

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....e liable to pay service tax on the consideration received for the period 4/2007 to 9/2008 and that respondents are not eligible for exemption as per notification 4/2004 cit. 31.03.2004. Show Cause Notice was issued proposing to demand service tax, interest and impose penalties. After due process of law, original authority confirmed the proposals. In appeal, the Commissioner (Appeals) set aside the demand, interest and penalties. Hence Revenue is now before the Tribunal. 2. On behalf of appellant/Revenue the Ld. AR Sh. K.P. Muraleedharan reiterated the finding in the impugned order. None appeared for the respondent. The matter was taken up for disposal after hearing the AR and perusal of records. 3. The main allegation is that responde....

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....in SEZ premise. It is also seen that in the instant case the Lower Adjudicating Authority has not disputed the fact of utilization of services of Tour Operator Services by the SEZ units. If that be the case, then it clearly amounts to consumption of services within SEZ. 5.3 Further, it is also seen that the SEZ Act has an overriding effect by virtue of Section 51 which provides that Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument have effect by virtue of any law other than this Act In view of this specific provision, if the appellant is held ineligible for availing Notification No. 4/2004 ST, considering its wordings i.e. consumption o....

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....n a SEZ' used in the said Rule has led to doubts as to whether services which are partly availed outside the SEZ like that of tour operator service/ Rent -a-cab service used for picking up and dropping employees are eligible for exemption from service tax. Other service like courier services, telephone services, internet will all fall in such category where part of the service may be availed outside the SEZ. When the service is ultimately consumed within the SEZ unit, whether services commenced outside the unit /or ended outside unit is of no consequence. When in effect the services are consumed within SEZ, the benefit of notification cannot be denied. Further by virtue of Section 51 of the SEZ Act, the provisions of the SEZ Act, has ov....