Commissioner Vs CIPLA Limited (CESTAT Delhi)
CESTAT Delhi held that SEZ unit is exempted from payment of service tax in terms of provisions of SEZ Act. Accordingly, condition of exemption by way of refund imposed under the provisions of the Finance Act are inconsistent with the provisions of the SEZ Act. Refund granted.
Facts- The respondent is manufacturer and exporter of pharmaceutical products having manufacturing facilities at Indore SEZ.
During the relevant period, the respondent was availing various services in relation to its authorised operation, such as construction service, telecommunication service, architecture service, consultancy engineer service, manpower recruitment service, security service, etc. Since the services received by the units located at SEZ were exempt from service tax by way of refund claim under Notification No. 40/2012-ST dated 06.2012 and under Notification No. 12/2013-ST dated 1.07.2013, the respondent filed six refund claims for the service tax paid on the input services.
Show cause notices were issued proposing to deny the refund basically on the ground that the conditions specified in the notification, in particular condition number 2(c), 3(e) and 3(f) were not complied with. The adjudicating authority rejected the refund claims vide order dated 03.02.2015, which was challenged by the respondent in the respective appeals before the Commissioner (Appeals) who was pleased to allow the refund claims. The revenue being aggrieved have preferred these appeals before this Tribunal.
