TMI Blog2012 (6) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 2005 or the Rules made thereunder and the conditions specified therein have to be fully satisfied for availing the benefit under the said notification. Further, the notification came into force much before the Special Economics Zone Act or the Rules made there under came into force. Therefore, exemption will not be available if the services are consumed elsewhere than in the SEZ. Accordingly, appellant directed to make a pre-deposit of Rs.1.00 Crore within a period of eight weeks and report compliance - Decided against assessee. - ST/11/2012 - S/644/2012/CSTAB/C-I - Dated:- 16-5-2012 - Ashok Jindal, P R Chandrasekharan, JJ. For Appellant: Mr Harsh Shah, Senior Manager For Respondent: Mr A K Prabhakar, AR Per: P R Chandrase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01/12/2005 ti 31/07/2007 for a consideration of Rs.17.43 crores approximately and the service tax payable on the same works out to Rs.2,07,42,984/-. Accordingly, a show-cause notice dated 23/04/2008 was issued to the assessee demanding service tax of Rs.2,07,44,984/- ad Rs.2,56,896/- in respect of the services rendered to the airlines for which they received a consideration along with interest thereon at appropriate rates. The notice also proposed penalties under Section 76 78 of the Finance Act, 1994. The case was adjudicated and the above demands were confirmed along with interest thereon. A penalty was also imposed on the assessee for an equivalent amount under Section 78 of the Finance Act for suppression and wilfull mis-statements o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x and the demand of service tax is not sustainable in law. Consequently the penal provisions also do not apply. Accordingly he prays for complete waiver of pre-deposit of the dues adjudged. 4. The Ld, AR appearing for the revenue on the other hand submits that exemption under Notification no. 4/2004-ST is a conditional exemption and is available only in respect of the services provided by a service provider for consumption of services within such Special Economic Zone. In the instant case the services of CHA, C F agent, Business auxillary services, etc. have not been consumed within the Special Economic Zone and, therefore, the benefit of the said exemption will not apply. The Ld. AR also relies on the judgement of the Tribunal in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the words. The entire matter is governed wholly by the language of the notification. If the tax payer is within the plain terms of the exemption it cannot be denied its benefit by calling in aid any supposed intention of the exempting authority". The principle relating to interpretation of notification was again considered and enunciated by the hon'ble apex Court in the case of Mangalore Chemicals Fertilizers Ltd., Vs. Dy. Commissioner reported in 1991 (55) ELT 437 (SC) wherein the apex Court held as follows:- "It appears to us the true rule of construction of a provision as to exemption is the one sated by this Court in Union of India Ors. Vs. Wood Papers Ltd., Ors (1991 JT (1) 151 at 155)" ..Truly, speaking liberal and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the language of the notification which has to be given its due effect. Supposed object and purpose of the exemption has to be culled out from the said language." 5.3 If one applies the ratio of these judgments to the facts of the present case, then the exemption is available only in respect of services provided for consumption within the Special Economic Zone. In other words, the exemption will not be available if the services are consumed elsewhere than in the Special Economic Zone. 5.4 The cannon of interpretation " Expressio unius est exclusio alterius" applies in this case. This cannon implies that "the express mention of one thing excludes all others". The explicit mention in the notification is "services provided for consumpti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Special Economic Zone would rise. The said decision of the hon'ble Gujarat High Court was upheld by the hon'ble apex Court reported in 2010 (255) ELT A115. 5.7 Applying the ratio of these judgments to the facts of the present case, it can be inferred that notification No. 4/2004-ST being a conditional exemption notification issued under Section 93 of the Finance Act, 1994, cannot be interpreted on the basis of the provisions of SEZ Act, 2005 or the Rules made thereunder and the conditions specified therein have to be fully satisfied for availing the benefit under the said notification. 5.8 Further, as observed earlier, the notification came into force much before the Special Economics Zone Act or the Rules made there under came ..... X X X X Extracts X X X X X X X X Extracts X X X X
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