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TMI Blog2020 (7) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... ng an advance ruling in respect of the following question. 1. Whether Portescap India Pvt. Ltd. is required to pay tax under reverse charge mechanism on procurement of renting of immovable property services from Seepz Special Economic Zone Authority (Local Authority) in accordance with Notification No. 13/2017 dated 28th June, 2017 read with Notification No. 03/2018 - Central Tax (Rate) dated 25th January 2018? 2. Whether Portescap India Pvt. Ltd. is required to pay tax under reverse charge mechanism on any other services in accordance with Notification No. 13/2017 dated 28th June, 2017 read with Notification No. 03/2018 - Central Tax (Rate) dated 25th January 2018? 3. If, answer to the above point Is in the affirmative, then the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) & 03/2018- C.T. (Rate) dated 25.01.2018. 2.5 Section 7 of SEZ Act, 2005 provides for exemption to all goods or services procured from a DTA (Domestic Tariff Area) or foreign suppliers specified in first schedule. According to Section 51 of the SEZ Act 2005, the provisions of SEZ Act would have overriding effect on provisions of any other act including taxation laws. 2.6 Section 26 of SEZ Act, 2005 deals with the exemption from tax on services provided to a developer or unit to carry out the authorized operations in a SEZ. The grant of exemption is subject to the terms and conditions as prescribed by the Central Government in terms of sub-section (2) of Section 26. Rule 22 of these Rules stipulates the terms and conditions for availing e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services of renting of immovable property from Central Government, State Government, Union territory or local authority. 2.11 Applicant has reproduced Section 16 of the IGST Act as under:- 16.(1) "zero rated supply" means any of the following supplies of goods 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. 2.12 Applicant has also referred to FAQ's issued by the CBIC clarifying the below: "6. When a SEZ unit or SEZ developer procures any goods or services from an unregistered supplier, whether the SEZ unit or SEZ developer needs to pay IGST under reverse charge or these will be zero rated sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ementioned notification exempts an SEZ unit from IGST on import of service. Therefore, Applicant is not liable to pay GST on reverse charge in the subject case. 2.17 Applicant is relying on the judgment of the Hon'ble Telangana and Andhra Pradesh High Court in GMR Aerospace Engineering Ltd. & another V/s U.O.I. & Ors (2019 (8) TMI 748) which states that so long as services are used for authorized operations of a SEZ unit, the same should be exempted from the levy of tax. 2.18 Hence, Applicant is not required to comply with the requirements of Notification No. 13/2017 dated 28.06.2017 read with Notification No. 03/2018 - C.T. (Rate) dated 25.01.2018 for any or all services mentioned therein. 03. CONTENTION - AS PER THE JURISDICTIONAL OF7I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on pro aided by this authority to an applicant on mailers or questions specified in subsection 2 of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 5.3 Therefore, before we decide the question raised by the applicant in this application, it is essential that we first determine whether or not the activities undertaken by the applicant pertains to the supply of goods or services or both, being undertaken or proposed to be undertaken by the applicant. 5.4 Section 95 of the CGST Act, 2017 allows this authority to decide the matter in respect of supply of goods or services or both, undertaken or proposed to be undertaken by the applicant. We find that the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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