2023 (8) TMI 541

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....gistered with the Service Tax Department for providing Manpower Recruitment Agency Services had filed half-yearly ST-3 return for the period October 2008 to March 2009 on 24.4.2009 for the aforesaid services. During the scrutiny of the said ST-3 returns, it was found that the appellant had availed the benefit of exemption Notification No. 4/2004-ST dated 31.3.2004 for the services rendered to units located inside the Special Economic Zone (SEZ) for the month of March 2009. However, the aforesaid exemption Notification was superseded by Notification No. 9/2009-ST dated 3.3.2009. Accordingly, all providers providing services to units located inside SEZ were liable to pay appropriate service tax from 3.3.2009. The appellants have availed exemp....

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....endment to the Notification 4 of 2004-ST, the Service rendered to SEZ is exempted from any levy of Service Tax as per the amended Notification 9 of 2009-ST. The main portion of the Notification exempts the levy itself and proviso only contemplates that if tax or duty is paid, the exemption is available in the form of refund. The above said submission is supported by the Clause 3 of the Notification, 9 of 2009-ST, dated, 03.03.2009. He further stated that the demand is barred by Limitation. Though the show cause notice was dated, 11.09.2009. the same was received by the appellant on 04.05.2010. It is well settled that the date of service of the show cause notice is the determining factor to compute the period of limitation to issue show caus....

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....ax benefit. He prayed that the impugned order be set aside. 6. The learned AR Shri Harinder Singh Pal supported the findings in the impugned order. 7. Heard both sides. We find that Notification No. 9/2009-ST dated 3 March 2009 supersedes the older notification No.4/2004 by providing for exemption from the levy of service tax in respect of the taxable services rendered to SEZ Developers and SEZ Units by way of a refund. Notification 9/2009 has in a change of policy modified the earlier procedure of automatic exemption from payment of service tax provided in relation to the authorised operations in a SEZ under the SEZ Act. Exemption of service tax under the new notification is by way of a refund and is subject to the various conditions....

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....ey did not attend the personal hearing given by him. We find that the impugned order also only examines the date of receipt of OIO, which is not relevant to determine the question of time bar. Hence this matter which was not brought for consideration to the Original Authority by the appellant needs to be examined by him along with the available evidence. 9. As regards the imposition of penalty, we find that the appellant was earlier availing exemption under Notification No. 4/2004-ST dated 31.3.2004 which got superseded by Notification No. 9/2009-ST dated 3.3.2009. The exemption availed was reflected in the ST-3 returns and the demand is also only for the period of March 2009. The short-payment was noticed during the scrutiny of the ST-3....