TaxTMI 
TaxTMI 
2023 (7) TMI 205
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....e. During the course of audit of record of the appellant by the internal audit team of Vadodara Audit -II, Commissionerate, Surat, it was noticed that M/s ONGC Petro Additions Ltd. (M/s OPAL), a SEZ unit situated at plot No. Z-1 & Z-83, Dahej Special Economic Zone, Dahej, had appointed M/s. IVRCL Infrastructure and Project Ltd. (M/s IVRCL) as contractor for carrying out work and providing services as per their contract. In turn, M/s IVRCL have entered into a sub-contract with Appellant for performing various works such as Excavation Services, Soil Filling Services etc. falling under the category of "Site Formation and clearance, excavation and earthmoving and demolition" Services, to be carried out at site of M/s OPAL, Dahej. In terms of co....
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...., No. 40/2012-ST dated 20.06.2012 and Notification No. 12/2013-ST dated 01.07.2013 relating to services provided to SEZ units or Developer, which resulted in non-payment of Services tax to the tune of Rs. 1,95,31,310/-. 2. Accordingly, a show cause notice was issued to the Appellant, it proposed to demand of Service tax along with interest and penalty. The show cause notice was adjudicated vide impugned Order-in-Original No. BHR-EXCUS-000-COM-032-16-17 dated 13-07-2016, whereby the proposed demand was confirmed with interest and equal amount of penalty was imposed under Section 78 of the Finance Act, 1994. Being aggrieved, the appellant is before this Tribunal. 3. Shri Nimesh S. Desai, Ld. Advocate appearing on behalf of the Appellant....
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....the exemption/immunity available to SEZ units under Section 26(1)(e) of the SEZ Act, 2005. Service tax exempted by the Section 26 of SEZ Act, 2005. Thus, exemption Notification itself not necessary. Hence, the appellant has rightly availed the exemption. 5. He also submits that the conjoint reading of Section 26(1)(e) of SEZ Act with Rule 31 of SEZ Rules would show that the only condition required for availing exemption from payment of service tax by developer/entrepreneur/ unit is that the taxable services should be used for the carrying on the authorized operations by the Developer/Entrepreneurs/Unit. The location of the service provider or the place of service is entirely irrelevant for this exemption. It is worthy to mention that, th....
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....ent notification not to undo benefit conferred under earlier notification. Thus, impugned notification sought to introduce new conditions which are not prescribed by the SEZ statutory provision and therefore interpretation of the Notification is contrary to the SEZ Act and SEZ Rules. Therefore, a reading of Section 51 would clear that the provisions of SEZ Act are paramount and anything contrary to the said provision will be overridden, meaning SEZ Act/ Rules are still holding the field and boils down to procedural lapses. 8. In support of above view he placed reliance on the following decisions. (i) M/s DIC Fine Chemicals Pvt. Limited vs. CCE, Final Order No. A/12278-12279/2022 dated 23.12.2022 (ii) Intas Pharma Limite....
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....e reiterates the finding of impugned order. 11. We have carefully considered the submissions made by both sides and perused the records. After going through the appeal records, we find that the main ground of Revenue in the present matter is that Notifications and SEZ Act and Rules provides exemption from payment of Service tax on taxable services provided to a Developer or SEZ unit for carrying out the authorized operation in a Special Economic Zone, but there is no provision for exemption for services provided by sub-contractor to contractors appointed by a Developer or Unit in the SEZ Act. In the present matter SEZ units appointed main contractors for carrying out work and main contractor appointed to Appellant as sub-contractor for c....