TaxTMI 
TaxTMI 
2019 (3) TMI 1011
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....em inter-alia includes providing rooms on tariff, supplying food/beverages, laundry services, housekeeping services etc. within the premises of the hotel. 2. The appellant filed an application for Advance Ruling before the Gujarat Authority for Advance Ruling (herein after referred to as the 'GAAR') and sought ruling on following questions- (i) The hotel being located in non-processing zone of Dahez Special Economic Zone whether liable to pay GST on all the services provided by it to the clients located in SEZ which inter-alia included supply of services by way of providing accommodation services, supplying food and beverages and supplying services ancillary to providing accommodation services? and (ii) Under extreme circumstances, if th....
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....2. 6. We have considered the submissions made by the appellant in the appeal as well as at the time of personal hearing held on 02.01.2019. 7.1 The appellant has submitted that they filed appeal in time before the Chief Commissioner, Vadodara, who on 03.10.2018 informed about the correct authority where appeal is required to be filed, which has caused the delay. The appellant requested to condone the delay and requested to admit the appeal. 7.2 The appellant has submitted the date of communication of the Advance Ruling as 18.08.2018, whereas records of postal authorities indicate that the said Advance Ruling was delivered to the appellant on 14.08.2018. A copy of letter F.No. IV/16-60/CCO/T/AAR/2017 dated 20/24.9.2018 of the Assistant Co....
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....e to the provisions of Section 16 of the IGST Act, 2017, pertaining to the 'Zero Rated' supply. Sub-section (1) of Section 16 of the IGST Act, 2017 reads as follows :- "Zero rated supply. 16.- (1) "zero rated supply" means any of the following supplies of goods or services or both, namely :- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. It is evident that clause (b) of sub-section (1) of Section 16 of the IGST Act, 2018 provides that supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit, is covered under 'zero rated supply'. Thus, to be qualified as 'zero rated' supply, the law....
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....been submitted that the IGST should not be applicable on the services provided in SEZ to persons other than SEZ units as the said services are received within the SEZ, which is deemed to be territory outside India. It has also been submitted that in view of Section 53(1) of the SEZ Act, 2005, the provisions of IGST Act, 2017 would not apply to the services rendered in the SEZ. It has also been submitted that Section 51 of the SEZ Act, 2005 provides that the provisions of SEZ Act will have effect notwithstanding anything inconsistent therewith in any other law. 9.2 The provisions of Section 53 of the SEZ Act, 2005 reads as follows :- "53 (1) A Special Economic Zone shall, on and from the appointed day, be deemed to be a territory outside t....
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....rized operations. The term "customs territory" cannot be equated to the territory of India. Further, the interpretation advanced by the appellant would lead to a situation where a Special Economic Zone would not be subject to any laws of India whatsoever. The entire SEZ Act, 2005 would be rendered redundant since it is stated to extend to the whole of India. Section 51 of the SEZ Act, 2005 provides for overriding effect in case there is anything inconsistent contained in any other law. However, no inconsistency between the provisions of the SEZ Act, 2005 and IGST Act, 2017 or CGST Act, 2017 / GGST Act, 2017 has been pointed out by the appellant. 9.5 Therefore, the reliance placed by the appellant on Section 53 and 51 of the SEZ Act, 2005 i....
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....t, 1962. The appellant has also referred to Circular No. 46/2017-Cus dated 24.11.2017 and Circular No. 3/1/2018-IGST dated 25.05.2018 and submitted that applying the analogy of the clarifications issued in the said Circular, IGST should not be applicable for the services consumed in Special Economic Zone itself, whether supplied to a unit or developer or any other person as the services provided by the appellant are authorized operations as per Letter of Permission. 11.2 Section 53(2) of the SEZ Act, 2005 creates a deeming fiction whereby a SEZ is deemed to be a port, airport, inland container depot, land station and customs stations under section 7 of the Customs Act, 1962. On the other hand, Circular Nos. 46/2017-Cus dated 24.11.2017 and....