Service tax applicable on maintenance, repair and overhauling (MRO) services to airlines by GMR Venture in SEZ – AAR

By TG Team Service Tax Featured , Judiciary May 20, 2011

TaxGuru Citation: 2011 taxguru.in 415
Case Name: Re. M/s MAS-GMR Aerospace Engineering Company Ltd (AAR Delhi)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: Advance Rulings

A tax tribunal has ruled that service tax will apply on the proposed GMR-led joint venture in Special Economic Zone to provide maintenance, repair and overhauling (MRO) facilities to domestic and foreign airlines. The ruling was given by the Authority of Advance Rulings (AAR) on an application filed by the MAS-GMR Aerospace Engineering Company, a joint venture of GMR, Hyderabad International Airport Limited, Hyderabad and Malaysian Aerospace Engineering, SDN-BHD, Malaysia.

The venture company, which proposed to set up MRO facility at an SEZ in Hyderabad, wanted to know whether the service tax would apply on services provided by the entity.

MAS-GMR Aerospace Engineering Company company had argued that since the MRO services are provided in a SEZ, which technically is outside the country, no service tax should be levied.

AUTHORITY FOR ADVANCE RULINGS
(CENTRAL EXCISE, CUSTOMS AND SERVICE TAX)
NEW DELHI

The 13th May, 2011

Ruling No. AAR /ST/06/2011
In
Application No. AAR/ ST /44/13/2010

Applicant :

M/s MAS-GMR Aerospace Engineering Company Ltd ,

GMR HIAL Airport Office, Rajiv Gandhi International Airport, Shamshabad, Hyderabad 500 409

Commissioner Concerned :

The Commissioner of Central Excise and Customs,

Hyderabad-IV Commissionerate,

Posnett Bhavan, Tilak Road, Ramkote, Hyderabad- 500 001

Present for the Applicant