2026 (7) TMI 1944

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....d confirmed service tax demand of Rs.1,43,523/-, together with applicable interest and penalty, on the ground that the appellant failed to produce Form A-2 for the Financial Year 2016-17 in respect of services rendered to an SEZ unit. The Commissioner (Appeals) also upheld levy of late fee for delayed filing of ST3 returns. 2. The facts, in brief, are that the appellant is registered with the service tax department and is engaged in providing Business Auxiliary Service, Cargo Handling Service and Goods Transport Agency Service. A Show Cause Notice was issued alleging short-payment of service tax on the basis of difference between the turnover reflected in Form 26AS and the turnover declared in the ST3 returns. 3. The Adjudicating Auth....

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....n denied only because Form A-2 for the relevant financial year was not produced. Therefore, the controversy is confined only to the effect of nonsubmission of Form A-2. 8. The issue is no longer res integra. The Hon'ble Andhra Pradesh High Court in the case of GMR Aerospace Engineering Ltd Vs UOI [2019 (31) GSTL 596 (AP)], while considering identical notifications issued under section 93 of the Finance Act, 1994, held that; • Section 26 of the SEZ Act grants a substantive statutory exemption. • The conditions governing such exemption can only be prescribed under the SEZ Act and thus, SEZ Rules. • The Executive cannot curtail or deny the statutory exemption by imposing additional procedural ....