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2023 (9) TMI 73 - AT - Service TaxLevy of Service tax - amounts received from service receivers towards providing premises on lease and for installation of ATM machine and tower - benefits provided under subsection (1) of Section 26 of SEZ Act, 2005 denied - violation of conditions of N/N. 04/2004-ST dated 31.03.2004 and subsequently conditions specified under N/N. 09/2009-ST dated 03.03.2009 and afterwards conditions of N/N. 17/2011-ST dated 01.03.2011. HELD THAT:- During the entire proceedings including hearing, Revenue could not place on record as to which are the conditions that are prescribed by the Central Government under sub-section (2) of Section 26 of SEZ Act, 2005. Further, it is noted that the said Notifications such as 04/2004, 09/2009 and 17/2011 are providing exemptions to the units under SEZ. Here the question is which provision requires the appellant who is a developer of SEZ to pay service tax. The conditions under the said notifications either decide entitlement of the units for exemption, but the provisions under said Section 26 provide that the units are exempted from levy of service tax when they receive services. So, clear interpretation provides that when the present appellant has provided services only to the units under SEZ, the said services were covered by the provisions of sub-section (1) of Section 26 of SEZ Act, 2005. Revenue could not place on record any conditions prescribed under sub-section (2) of Section 26 ibid - the issue is covered by the provisions of sub-section (1) of Section 26 ibid. Therefore, Revenue does not have authority of law to collect service tax on services provided by SEZ developer to units in SEZ. The impugned order is not in accordance with the provisions of law - Appeal allowed.
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