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2023 (8) TMI 746 - SC - Service TaxClassification of services - Information Technology Software service or Intellectual Property Service? - period from 1st April 2004 to 31st March 2009 - whether in respect of the particular transactions, service tax was payable under the classification mentioned in the show cause notices? HELD THAT:- Clause (e) of subsection (1) of Section 26 refers to exemption from service tax under the Finance Act on taxable services provided to a developer or unit to carry on authorised operations in SEZ. Under Subsection (1) of Section 51, SEZ Act prevails over other enactments which are inconsistent to the provisions contained therein. Thus, only when by exercising the power under subsection (2) of Section 26 of SEZ Act, an exemption is granted by the Central Government that the assessee can claim exemption. There are no fault with the reasoning adopted by CESTAT. However, in the proceedings pursuant to remand, it will be open for the assessee to show that an exemption was available under subsection (2) of Section 26 of the SEZ Act. It is also held that octroi charges are in the nature of levy for transportation of goods. Therefore, octroi charges cannot be a part of the value of the taxable services. However, a remand was ordered to enable the assessee to produce evidence regarding the amounts paid towards octroi charges. Appeal dismissed.
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