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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, Dr. Chittaranjan Satapathy, JJ.
Maersk India (P.) Ltd. -Appellant
Versus
Commissioner of Service Tax, Chennai -Respondent
STAY ORDER NO. 201 OF 2011 APPLICATION NO. ST/STAY/401 OF 2010 APPEAL NO. ST/693 OF 2010
Decided On : 07-02-2011
K.S. Venkatagir,Ms. Indira Sisupal
Ms. Jyoti Balasundaram, Vice-President - Heard both sides on the application for waiver of pre-deposit of service tax of Rs. 3,63,934/- (including education cess and secondary and higher education cess) together with interest and penalty of equal amount.
2. The demand arises as a result of denial of exemption from service tax to import/export cargo clearance services provided to units located in the SEZ during the period May 2006 to November 2007, in terms of Notification No. 4/2004-S.T., dated 31-3-2004.
3. We find that 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. In the light of the language of the relevant Section of the SEZ Act, and in the absence of dispute regarding provision of taxable services to SEZ Unit, prima facie case for waiver has been made out and therefore we dispense with the requirement of pre-deposit of the amounts in dispute and stay recovery thereof pending the appeal.
