TaxTMI 
TaxTMI 
2020 (2) TMI 229
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....Special Economic Zone Act, 2005 (SEZ Act, for short) and are engaged in the provision of Information Technology Software Services (ITSS) and Business Auxiliary Services (BAS) to their clients located across the globe. During the relevant period, the appellant for its authorized operation received specified services from suppliers registered under Service Tax laws. Being a SEZ unit, the appellant was eligible for exemption by way of refund in respect of services received by them for authorized operation by virtue of Notification No.12/2013-ST dt. 01/07/2013. Appellant filed various refund applications under the said Notification from time to time. After following due process of law, the original authority has rejected the substantial part of the claim. Aggrieved by the said order, appellant filed appeal before the Commissioner(Appeals) on the ground that in terms of Section 51 of the SEZ Act, the provision of Section 51 would have a overriding effect over any other law in India and the intention of the legislature was to exempt these services received by a SEZ unit from levy of service tax. Appellant has received the services for discharge of authorized operations and have fulfilled....
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....the Development Commissioner's Approval letter (Para 26 of the OIA) 23,911 Business support service Invoices not submitted (Para 39 of the OIA) 22,026 Telecommunication Service Invoices not submitted (Para 39 of the OIA) ST/20892/2019 January 2017 to March 2017 4,35,544 Business Auxiliary Services Services not received from the specified vendor as per the Development Commissioner's Approval letter (Para 26 of the OIA) 3,80,160 Management Consultants Service Services not received from the specified vendor as per the Development Commissioner's Approval letter (Para 26 of the OIA) 2,666 Calibration Service Not covered in the default list of services (Para 26 of the OIA) 9,750 Club & Association Service Not covered in the default list of services (Para 26 of the OIA) ST/20893/2019 October 2016 to December 2016 4,35,544 Business Auxiliary Services Services not received from the specified vendor as per the Development Commissioner's Approval letter (Para 26 of the OIA) 93,021 Management Consultants Service Services not received from the specified vendor as per the Development Commissioner's Approval lette....
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....provisions of any other law. He further submitted that it is a settled legal position that approval from UAC is not mandatory as the SEZ Act has overriding effect over the provisions of any other law. In support of this submission, he relied upon the following decisions:- i. Mast Global Business Services India Pvt. Ltd. Vs. CCT, Bangalore [2018 (ACR) 369 CESTAT Bangalore] ii. Lowes Services India Pvt. Ltd. Vs. CST, Bangalore [Final Order No.20219-20222/2019 dt. 28/02/2019] iii. Mangalore Refineries & Petrochemicals Ltd.Vs. CCE&CT, Mangalore Vs. [2019(2) TMI 588 CESTAT Bangalore] iv. State through CBI Vs. Parmeshwaran Subramani & anr. [Order dt. 11/09/2009 in Criminal Appeal No.1758 of 2009] 4.2. As far as appeal No.ST/20891/2019, learned counsel submitted that with respect to import of services, refund has been rejected on the ground that the invoice copy was not made available. Learned counsel submitted that in fact this finding is also factually incorrect. The appellant has submitted the copy of invoice with the office of the Commissioner of Service Tax. Though the appellant has once again submitted the same along with copy of the challan, e....
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.... benefits to SEZ units. Section 26 of the SEZ Act, 2005 read with read with Rule 31 of the SEZ Rule, 2006 along with Section 51 of the SEZ Act, 2005 which clearly states that SEZ Act has overriding effect over other laws and accordingly the SEZ units are exempt from payment of service tax. He further submitted that consistently various courts have held that the provisions of SEZ Act shall have overriding effect as long as the input services are consumed within the SEZ unit, the refund has to be sanctioned to the assessee. He further submitted that the immunity provided from service tax paid cannot be taken away by the procedural requirement prescribed by Notification. For this submission, he relied upon the following decisions:- a) Mast Global Business Services India Pvt. Ltd. Vs. CCT, Bangalore [2018 (ACR) 369 CESTAT Bangalore] b) Lowes Services India Pvt. Ltd. Vs. CST, Bangalore [Final Order No.20219-20222/2019 dt. 28/02/2019] c) Mangalore Refineries & Petrochemicals Ltd.Vs. CCE&CT, Mangalore Vs. [2019(2) TMI 588 CESTAT Bangalore] d) State through CBI Vs. Parmeshwaran Subramani & anr. [Order dt. 11/09/2009 in Criminal Appeal No.1758 of 2009] ....
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.... of the settled legal position by various decisions relied upon by him, condition in respect of approval from UAC is not a mandatory requirement as the SEZ Act vide Section 51 of SEZ Act will have overriding effect over the provisions of any other law. Therefore keeping in view the intention of the Government in enacting the SEZ Act and giving special fiscal concessions to SEZs, I am of the considered opinion that this is only a procedural and is not a mandatory condition as held by the Commissioner(Appeals). Further the decisions relied upon by the appellant clearly hold that the SEZ Act has a overriding effect over other laws. Therefore this ground on the basis of which refund claims have been rejected is not tenable in law. 5.1. Further I find that in the case of Photon Infotech Pvt. Ltd. cited supra, this Tribunal has held in para 7 as under:- 7. After considering the grounds of appeals and written submissions, I find that the adjudicating authority has not disputed the fact of receipt of these services in the SEZ unit and the same are consumed by the appellant unit and further the issue is squarely covered in favour of the appellant by the decision in the cas....