TaxTMI 
TaxTMI 
2025 (6) TMI 1962
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....ged in manufacture and sale of computer and computer parts and having manufacturing unit in SEZ, Chennai. Appellant is also involved in service activities as part of the business. Appellant used to procure 3rd party hardwares and softwares for the purpose of integrating such software into appellant's product. During audit, it is alleged that the service provided by the parent company in US to appellant is classifiable under Business Auxiliary Service (BAS) and exemption from payment of service tax under Notification No.9/2009-ST dated 03.03.2009 is not available for the period from 03.03.2009 to 20.05.2009 since the goods were wholly consumed in SEZ. Though appellant had paid service tax under the category of Information Technology Software....
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....arikar Motors Ltd. vs. CCE, Thiruvananthapuram: 2025 (4) TMI 821 Cestat Bangalore 2.1 Learned counsel further submits that as per the judgment of the Hon'ble Supreme Court in the matter of CST vs. Bhayana Builder (P) Ltd.: 2018 (10) GSTL 118 (SC), it is held that Section 67 clearly indicates that the gross amount charged by service provider has to be for the service provided. Accordingly, it is not any amount charged, which can become the basis of value on which service tax becomes payable but the same amount charged has to be necessarily a consideration for the service provided, which is a taxable under the Finance Act, 1994. Therefore, any amount charged which has no nexus with the taxable service is not a consideration for service pro....
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....d Representative (AR) for the Revenue reiterated the findings in the impugned order. 4. Heard both sides. As regarding the demand on the reimbursable expenses, it is settled that no service tax is payable on such reimbursable expenses. In the case of Intercontinental Consultants and Technocrats Pvt. Ltd. vs. UOI which was affirmed by Hon'ble Supreme Court, their Lordships observed as: "29. In the present case, the aforesaid view gets strengthened from the manner in which the Legislature itself acted. Realising that Section 67, dealing with valuation of taxable services, does not include reimbursable expenses for providing such service, the Legislature amended by Finance Act, 2015 with effect from May 14, 2015, whereby Clause (a)....
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.... service provided to SEZ was available under notification no. 9/2009-ST which was by way of refund however, subsequently notification no.15/2009-ST dated 20.05.2009 was issued amending the notification no.9/2009-ST wherein, sub-para (c) of para 1 of the notification no.9/2009-ST was substituted. For ease of reference, the said notification is reproduced below:- Exemption to taxable services provided to a developer or unit of Special Economic Zone - Notification No. 9/2009-S.T., amended In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance....
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.... by way of substitution of sub-para (c) in the notification No.9/2009-ST. It is settled law that if any amendment is brought whereby, the earlier terms of the notification is substituted then, such amendment shall be effective from retrospective effect i.e. from the date of original notification accordingly, for the services provided during the period 03.03.2009 to 20.05.2009 substituted sub-para (c) shall apply. As per the sub-para (c) of Notification no. 15/2009-ST., if the service provided is for use in authorized operations in the SEZ shall be exempted without opting for the refund by the service provider subject to the condition the services are consumed wholly within the SEZ. In the present case, the service of erection, commissioning....
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....cts. Section in all three Acts. 39. The charging sections, having been overridden by the SEZ Act passed by the Parliament, no legal authority to levy and collect central excise duty, customs duty or service tax for goods or services supplied for authorised operations of SEZ developers and units covered by Section 26 remains. Without such a legal authority, no tax or duty can be either levied or collected in view of Article 265 of the Constitution of India. 40. Therefore, there is no need for any exemption notifications under any of these three Acts nor is it necessary to fulfil any conditions of any of the conditions laid down in exemption notifications, if any, issued for the purpose. Thus, the charge of excise duty under....