TaxTMI 
TaxTMI 
2020 (2) TMI 964
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....ee Trade Warehousing Zone (FTWZ), as per Authorized operations of Letter of Approval (LOA) issued by the Development Commissioner for providing various logistic services. On the basis of investigation conducted by DGCEI, that appellant though rendered storage and warehousing services within the FTWZ to clients based abroad as well as Indian clients during the period July, 2012 to March, 2015 they did not discharge service tax on such services. They also did not discharge service tax on various other services accounted by them. SCN was issued proposing to demand service tax on the services provided by them from FTWZ zone exclusively to foreign based clients. After due process of law the original authority held that the services provided to f....
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....change; (m) "export" means- (i) taking goods, or providing services, out of India, from a Special Economic Zone, by land, sea or air or by any other mode, whether physical or otherwise; or (ii) supplying goods, or providing services, from the Domestic Tariff Area to a Unit or Developer; or (iii) supplying goods, or providing services, from one Unit to another Unit or Developer, in the same or different Special Economic Zone;" 2.2 The appellant is located in FTWZ zone and has provided services which would meet the definitions as above. Further, the consideration was received in convertible foreign currency. The activity rendered by them has to be considered as export of services. As per Chapter 7A of FT....
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.... for remand of the matter on this issue to produce necessary documents to establish their contention. 3.1 Learned AR, Shri Arul C. Durairaj, Superintendent, appeared for the department. Referring to the definition of "export‟ as contained in Section 2 (m) of SEZ Act, 2005, he submitted that only when the services are provided out of India from a Special Economic Zone, the activity would be export. In the present case, the storage and warehousing is done in the FTWZ zone situated in India. Although the service recipient is placed abroad, since the place of provision of service is in India, the activity cannot be considered as export of service. Whether a service is to be treated as export or not was regulated under Export of Service....
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....r to a person acting on behalf of the provider of service, in order to provide the service shall be the location where the services are actually performed. In the present case, the services are performance based services and are actually performed in India. Therefore there is no export of service. The authorities below have rightly upheld the demand. 3.2. On the second issue with respect to reimbursable expenses, Ld. AR submitted that the appellant has not produced necessary documents to establish that the amounts collected are actual reimbursements by customers. 4. Heard both sides. 5.1 Detailed arguments were advanced by the Ld. Consultant only on demand confirmed under Storage and Warehousing services. It is not disputed that th....
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....ded, from a Special Economic Zone or from a Unit, to any place outside India: (c) exemption from any duty of excise, under the Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or any other law for the time being in force, on goods brought from Domestic Tariff Area to a Special Economic Zone or Unit, to carry on the authorised operations by the Developer or entrepreneur; (d) drawback or such other benefits as may be admissible from time to time on goods brought or services provided from the Domestic Tariff Area into a Special Economic Zone or Unit or services provided in a Special Economic Zone or Unit by the service providers located outside India to carry on the authorised operations by the Developer or ent....
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....lace of Provision of service or other Rules to hold that the appellant has not exported any services. The meaning of service and export contained in the special legislation of SEZ Act, 2005 by which SEZ or FTWZ has been created has to be given effect. The Service Tax Rules, 1994 cannot be pressed into application so as to defeat the intention and purpose of Section 26. When the intention of creating such FTWZ within India is to give exemption from levy of all duties and taxes, the department ought to have confined to the definitions contained in Section 2 (z) and 2 (m) of the said Act. Further, the consideration is received in foreign currency as well as the service recipient is a person placed outside India. The department cannot then cont....