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2011 (5) TMI 10 - AAR - Service TaxSEZ units - Services to be provided from SEZ area to SEZ area, DTA area and foreign aviation entities - applicability of service tax on various activities - Scope of Section 51 of SEZ Act, 2005 - held that:- Provision of Section 51 of the SEZ Act relating to the said Act having an overriding effect would need to be invoked only if any inconsistency is noticed between the provisions of the SEZ Act and any other law for the time being in force. - Section 64 of the said Finance Act provides that Chapter V of the said Act extends to the whole of India except the State of Jammu and Kashmir. Services provided to and from an entity in a SEZ are provided from India. Section 53(1) of the SEZ Act does not make the Finance Act, 1994 inapplicable to a SEZ. In the absence of any inconsistency there is no need to invoke section 51 of the SEZ Act. If a particular law is applied to SEZs with modifications (the Income Tax Act,1961 applied to SEZ under Section 27 of the SEZ Act), it cannot lead to an inference that other laws which may not have been specifically mentioned in the SEZ Act have no application to SEZs - All central laws apply to SEZs with modifications or exceptions, if any, as provided in the SEZ Act itself or in rules made thereunder. Scope of Sec. 66A - SEZs are deemed to be outside the customs territory of India only for undertaking authorized operations; all other enactments are applicable to the operations carried out in the SEZs. The MRO services would therefore be performed within the territory of India and Section 66 A will have no application in the context of these activities. The services provided by the applicant would be taxable under Section 66 of the said Finance Act, 1994. MRO (Maintenance, Repair and Overhauling) Services - MRO services provided by the applicant cannot also be considered as export of taxable services under the Export of Services Rules, 2005 since in terms of clause (ii) of Rule 3 (1) of the Export of Services Rules, services specified in sub-clause (zzg) of clause (105) of Section 65 of the Finance Act shall be considered as export only if such services are performed outside India. SEZs being part of India, performance of such services in the SEZs does not entitle them to be categorized as exports of taxable services.
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