TaxTMI 
TaxTMI 
2021 (8) TMI 450
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....nder clearing and forwarding services for the reason that they had not included the reimbursable charges received from the customers in the taxable value. The department was of the view that they short-paid service tax under this category. 2. Secondly, it was seen that for the period 2012-13 and 2013-14, the appellants had rendered man power services to service recipient situated in Special Economic Zone (SEZ). Though they claimed exemption as per the Notification No.40/2012-ST dt.20.06.2012 w.e.f. 01.06.2012, they did not produce necessary documents in the nature of A1 and A2 certificates. Therefore could not claim the benefit of the above notification. The Department was of the view that appellant has thus short paid service tax under ma....
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....tuated in SEZ. Three different types of exemptions are prescribed under SEZ law with regard to exemption of taxes and duties; (i) to the goods or services exported out of SEZ or imported into SEZ from DTA unit (ii) to duties / taxes specified under Section 26 (1) of Special Economic Zones Act, 2006 and (iii) from State taxes in terms of Section 50 of SEZ Act, 2005. The exemption notifications issued under Finance Act, 1994 are general and available to all including SEZ units. However, Section 26 (1) of SEZ Act, 2005 is a special power of exemption available to unit operating under special enactment i.e. SEZ Act. Therefore the notifications issued under Finance Act, 1994 cannot decide eligibility of exemption to SEZ units in view of Section ....
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.... their customers. On such score, the issue stands covered by the decision of the Hon'ble Apex Court in the case of Intercontinental Consultants & Technocrats Pvt. Ltd. (supra). We therefore have no hesitation to hold that the demand under this category cannot sustain and requires to be set aside, which we hereby do. 7. The second issue is with regard to the demand under man power supply service. Admittedly, the services were provided to service recipient situate in SEZ. It is also brought out that as per Notification NO.40/2012-ST dated 20.06.2012, the service tax is exempted. However to claim such exemption the appellant has to produce the following :- (i) List of services as required for authorized operations of the service recipient a....
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....ime being in force or in any instrument having effect by virtue of any law other than this Act. Section 51 reads as follows : "51. Act to have overriding effect. - The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act." 29. The contention of Smt. Sundari R. Pisupati, Learned Senior Standing Counsel is that there is no inconsistency between (i) the terms and conditions prescribed in the notifications issued under Section 93 of the Finance Act, 1994 and (ii) the terms and conditions prescribed in Rules 22 and 31 of the SEZ Rules, 2006, and that therefore, Section 51 of th....
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....ere is no question of comparing the terms and conditions prescribed in Rule 22 with the terms and conditions prescribed in the notifications issued under any one of five enactments listed in Section 26(1) to find out whether there was any inconsistency. 31. Support can be drawn for the above interpretation, from Section 50 of the SEZ Act, 2005 also. Section 50 of the SEZ Act, 2005 enables State Governments to enact laws for the grant of exemption from state taxes, levies and duties. Since a Central Law cannot provide for exemption from the levy of State taxes, Section 50 merely enables the State Governments to enact laws. 32. A combined reading of Sections 7, 26 and 50 of the SEZ Act, 2005, would show that SEZ Act, 2005 speaks of three ....
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....ment dealing with a unit in a special economic zone. Therefore, the notifications issued under Section 93 of the Finance Act, 1994 cannot be pressed into service for finding out whether a unit in a SEZ qualifies for exemption or not. 35. For driving home her contention that SEZ Act, 2005 and the rules framed thereunder do not constitute a complete Code in themselves, Smt. Sundari R. Pispuati, Learned Senior Standing Counsel relied upon two decisions of the Supreme Court and one decision of the Madras High Court. In Ravula Subba Rao v. Commissioner of Income Tax, Madras - AIR 1956 SC 604 relied upon by the Learned Senior Standing Counsel, the question that arose before the Supreme Court was whether the requirement under the Income Tax Rule....