TaxTMI 
TaxTMI 
2018 (7) TMI 334
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....n No. 4/2004-ST dated 31.03.2004 and had not discharged the service tax on the value of the services realized by them. It appeared that the appellant is not eligible to avail the exemption under the said notification as the services are not consumed within SEZ. SCN was issued proposing to demand the service tax along with interest and also for imposing penalties. After due process of law, the adjudicating authority confirmed the service tax liability of Rs. 81,128/- along with interest and imposed penalty under Section 76 of the Finance Act, 1994. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, the Ld. Counsel Shri J. Sankarraman submitted that the department has sought to deny the....
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....rom service tax for authorized operations of SEZ units. Export goods manufactured by SEZ unit are the most important authorized operation of such SEZ unit. Hence, the services consumed for such operation is to be exempted under the Notification No. 4/2004. The word "consumption" used in Notification Nos 4/2004 has to be construed as service rendered to a developer/unit in SEZ. The service recipient/unit is situated in SEZ and therefore eligible for the benefit of exemption. Without prejudice, it is submitted that prior to introduction of Notification No. 4/2004, exemption from service tax for services provided to developer/unit in SEZ was covered by Notification No. 17/2002-ST dated 21.11.2002. This notification did not contain any restrict....
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....any description as defined in clause (105) of Section 65 of the said Act provided to a developer of Special Economic Zone or a unit (including a unit under construction) of Special Economic Zone by any service provider for consumption of the services within such Special Economic Zone, from the whole of service tax leviable thereon under Section 66 of the said Act,.............." The doubt has arisen as the notification uses the words "consumption of services within Special Economic Zone". The period involved is February 2008. SEZ Act 2005 has come into force w.e.f. 10.02.2006. Section 26 of the Act provides for various exemptions and concessions to SEZ unit/developers. Section 51 lays down that the SEZ Act will have overriding effect ove....
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....ection (i) dated the 31s.03.2004, vide G.S.R 248 (E), dated 31.03.2004, except as respects things done or omitted to be done before such supersession, the Central Govt., on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services specified in clause (105) of Section 65 of the said Finance Act, which are provided in relation to the authorized operations in a Special Economic Zone and received by a developer or units of a special economic zone, whether or not the said taxable services are provided inside the special economic zone, from the whole of the service tax leviable hereon under Section 66 of the said Finance Act. 6. There may be services which are wholly consumed within the geographi....