Exports to SEZ should be included for Refund of Service Tax

CA URVASHI PORWAL

Brief of the Case

In the case of M/s. Cognizant Technology Solutions Vs. CCE & ST (LTU), Chennai, it was held that the export turnover portion in the formula prescribed under Rule 5 of CCR includes the value of exports made from SEZ. It was held that when the revenue proceeded to include the value of SEZ exports in computing the total turnover, the same should also have been included in computing export turnover and accordingly the value of export turnover should be equal to the total turnover and the value of SEZ exports should be included in the export turnover (numerator).

Facts of the Case

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