SEZ: Refund under Notification No. 9/2009-ST dated 03/03/20019.: No service tax is payable on the services provided by a service provider to a SEZ unit. Section 51 of the SEZ Act also makes over-riding provision that SEZ Act shall have effect even if there is anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any other law.

Exemption: SEZ: Demand: For the intervening period: Prior to 3-3-2009 there was exemption from payment of duty and after 20-5-2009, the exemption continued, during the interim period, there was no exemption : the situation was revenue neutral since even if the appellant was to pay the Service Tax, recipient could have claimed the same as refund, which is what is done in respect of Service Tax paid in respect of the services utilized outside SEZ, the question of having any intention to evade duty does not arise and therefore the Show Cause Notice issued on 19-10-2010 to recover the Service Tax from 3-3-2009 to 20-5-2009 was time-barred: Pre deposit waived.

Exemption: SEZ: Demand: For the intervening period: Prior to 3-3-2009 there was exemption from payment of duty and after 20-5-2009, the exemption continued, during the interim period, there was no exemption: the situation was revenue neutral since even if the appellant was to pay the Service Tax, recipient could have claimed the same as refund, which is what is done in respect of Service Tax paid in respect of the services utilized outside SEZ, the question of having any intention to evade duty does not arise and therefore the Show Cause Notice issued on 19-10-2010 to recover the Service Tax from 3-3-2009 to 20-5-2009 was time-barred: Pre deposit waived.

SEZ: Notfn.No.9/2009: Any service tax paid/ remitted by a service provider is liable to be refunded to the provider who has remitted service tax in relation to taxable services provided to a developer or unit, to carryon authorized operations in a SEZ. 

SEZ: Input Services: Appellants permitted to avail certain input services namely Legal services, Tour Operator Services, Air Travel Agent Services etc. by the Board of Approval subsequently: These approvals not available at the time of filing of the refund claim though the appellant had sought the approval much earlier: Entire matter needs reconsideration in view of the approvals granted by the Development Commissioner or competent authority : Matter remanded.

Special Economic Zone: Services provided outside SEZ will not be eligible for exemption under Notification No.4/2004-ST dated 31/03/2004

Service Tax: Service provided to SEZ: Special Economic Zone Act, 2005 and the Special Economic Zone Rules, 2006 : There is no dispute that the containers provided to the units in the SEZ have been used by such units for the authorised operations namely, for bringing inputs for manufacture and carrying the finished goods out of SEZ for export purposes. Therefore, the impugned services relating to supply of containers in the SEZ are exempt from payment of service tax. The impugned order is set aside and allow the appeals. (para 7)

Service Tax : Denial of exemption in terms of Notification No. 4/2004-ST dated 31.3.2004: The applicants have made out a strong prima facie case for total waiver in the light of the language of Section 26(1)(e) of the SEZ Act which provides exemption from service tax on taxable service provided to a developer or unit to carry on the authorized operations in a Special Economic Zone and there is no dispute that taxable services was provided to a SEZ unit which carried on authorized operations. The case of the Department is that Notification in question exempts service tax only on services Consumed within the SEZ. Requirement of pre-deposit dispensed with and stay recovery thereof pending the appeal.(Para3).