Service Tax – Cestat Ahmedabad: Service of erection, commissioning and installation used and wholly consumed in the SEZ are exempted – Also, all the supplies of goods and services made to SEZ are not chargeable to duty or Service tax; 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 - Appeal allowed [Order attached]
Order Date – 07 February 2023
Parties: Neo Structo Construction Pvt Ltd Vs C.C.E. & S.T.-Surat-i
- The Appellant, Neo Structo Construction Pvt Ltd, are entered into an agreement with M/s. Reliance Petroleum Limited, a unit situated in SEZ for providing services which were to be consumed within SEZ. They availed the exemption under notification no. 4/2004-ST.
- A show cause notice was issued for the period 03.03.2009 and 20.05.2009 wherein, it was proposed to demand service tax for the service provided to SEZ for the service wholly consumed within their SEZ.
- Revenue has contended that as per the Notification No. 9/2009-ST the appellant was supposed to pay Service tax first and thereafter, should have claimed the refund.
- Whether the appellant is entitled to exemption?
- The Tribunal observed that the appellant have provided the services to SEZ during the period 03.03.2009 to 20.05.2009, during the said period the exemption to 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 wherin, sub-para (c) of para 1 of the notification no.9/2009-ST was substituted.
- held that the service of erection, commissioning and installation is indeed used and wholly consumed in the SEZ therefore, the appellant is eligible for exemption under notification no.9/2009-ST as amended by notification no.15/2009-ST dated 20.05.2009.
- Without prejudice to the above, also find that even as per SEZ Act, all the supplies of goods and services made to SEZ are not chargeable to duty or service tax. For this reason, also, the demand is not sustainable.
- Hence the appeal is allowed.