TMI Blog2018 (8) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... IGST Act, in Section 16(1)(b) does not categorically say that the supplies of goods and services should be for authorized operations, it is implicit therein when it says that the supplies are for the SEZ Developer or SEZ Unit. Therefore the litmus test for any supply to be termed as zero-rated supply is to ascertain essentially whether it is for authorized operations or not. The sine qua non or indispensible element is that the supply has to be certified by the proper officer as constituting authorized operations. Benefit flowing out from the SEZ Act, 2005, accrues to anyone only when the condition of authorized operations is fulfilled. Therefore even in the event of the IGST Act, 2017, not explicitly using the term 'authorised operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kes the following types of transactions: (a) The applicant installs beverage vending machines inside SEZ premises, prepares beverages using the vending machines its ingredients, supplies to SEZ units which are consumed by the employees of SEZ units and charge the SEZ units based on number of cups of beverages supplied. (Cuppage billing) (b) The applicant installs beverage vending machines inside SEZ premises, supplies beverage ingredients to the SEZ units and bills based on the quantity of ingredients supplied. SEZ units prepare the beverages using the vending machines and serve them to its employees. There will not be any consideration for the usage of vending machine by the SEZ units. 3. The Applicant contends that all supplies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Ltd., authorizing Sri S Vishnumurthy, Chartered Accountant to represent the applicant before the Authority for Advance Ruling in connection with the instant application for Advance Ruling. 4. The authorized representative Sri. S Vishnumurthy, Chartered Accountant appeared for personal hearing proceedings and submitted written arguments inter alia stating as under : (a) The instant application is in respect of issues relating to classification of goods services and hence is maintainable under Section 97(2) of CGST Act'2017. (b) Any supply of goods or services to SEZ units is zero rated. (c) A Person making zero rated supplies can claim refund of input tax credits or claim refund of IGST paid on such supplies, as per Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods or services or both namely:- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. 7.2 Further Special Economic Zone shall, in terms of Section 2(19) of IGST Act,2017, have the meaning as assigned to it in clause (za) of Section 2 of the Special Economic Zones Act, 2005 (28 of 2005). This Act provides for the establishment, development and management of the Special Economic Zones for the promotion of exports and for matters connected therewith or incidental thereto. 7.3 The operations to be carried out in the Special Economic Zone and also in the Units located therein have to be in accordance with the authorisation to be given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... based on the quantity of ingredients supplied. SEZ units prepare the beverages themselves using the vending machines and serve them to its employees. There will not be any consideration for the usage of vending machine by the SEZ units. 8.2 The applicants'contention is that any supply of goods or services to SEZ units is zero-rated and interprets that the phrase 'any supply'would cover everything, including beverages and ingredients for beverages. 8.3 The applicant has used the term 'any supply'. We find that this term is not used anywhere in the statute. The word 'any'has been used only once in Section 16(1) of IGST Act, 2017. It reads '(1) zero-rated supply means any of the following supplies of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rule 89 of the CGST Rules, 2017. It reads as under. Rule 89. Application for refund of tax, interest, penalty, fees or any other amount.-(1) Any person, except the persons covered under notification issued under section 55, claiming refund of any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file an application electronically in FORM GST RFD-01through the common portal, either directly or through a Facilitation Centre notified by the Commissioner: Provided that any claim for refund relating to balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 may be made through the return furnished for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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