Case Law Details
Hiranandani Builders Vs Commissioner of Service Tax-VII (CESTAT Mumbai)
Introduction: The CESTAT Mumbai recently released an order in the case between Hiranandani Builders and the Commissioner of Service Tax-VII. The judgment set a precedent, stating that the Revenue has no authority to collect service tax from developers of Special Economic Zones (SEZs) when providing services to units within the SEZ. This article dissects the case, examining its implications and the specific laws and notifications involved.
Background and Brief Facts: The appellant, Hiranandani Builders, is a registered Service Tax entity. The Revenue department subjected the company’s records to an audit, revealing that they received payments for lease rent and maintenance services provided to various units, including those in SEZs. The original authority imposed service tax demands and penalties, invoking multiple sections of the Finance Act, 1994.
Legal Framework Involved
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