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TMI Blog2022 (9) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... ,942 as tax payable under section 73 of Finance Act, 1994 for the period from 2008-09 to 2012-13 along with applicable interest under section 75 of Finance Act, 1994 besides being imposed penalty of like amount under section 78 of Finance Act, 1994, is in appeal before us with the plea that the adjudication order had failed to appreciate that the services rendered by them to M/s Credit Suisse Services (India) Pvt Ltd was not taxable owing to the privileges conferred upon the recipient by Special Economic Zones Act, 2005. 2. It was alleged that between June 2009 and February 2011, the appellant herein had rendered 'taxable service' valued at Rs. 80,16,46,587 on which the liability of Rs. 8,25,69,598 should have been discharged and, in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness auxiliary service' within India valued at Rs. 2,72,68,835 on which liability of Rs. 30,03,807 had not been discharged. 4. We have heard Learned Counsel for appellant and Learned Authorized Representative at length. The primary contention of Learned Counsel is that the issue of taxability of services rendered to units in special economic zones (SEZ) stands settled by the decision of the Hon'ble High Court of Telengana and Andhra Pradesh in GMR Aerospace Engineering Limited v. Union of India & others [2019-VIL-489-TEL] holding that '24. Therefore, the terms and conditions subject to which the exemptions are to be granted under sub-section (1) of Section 26 should be prescribed by the Rules made by the Central Government under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (2). Therefore, the 5th respondent cannot read Section 26(1) to mean that the exemptions listed therein are (1) subject to the provisions of sub-section (2) of Section 26, and (2) also subject to the terms and conditions prescribed in the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Central Tariff Act, 1985 and the Finance Act, 1994. This is especially so, since the authority of the Central Government to prescribe the terms and conditions subject to which exemptions may be granted under Section 26(1), flows only out of sub-section (2) of Section 26. The word "prescribe" is verb. Generally no enactment defines the word "prescribe". But the SEZ Act 2005 defines the word "prescribe" under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er law for the time being in force, on goods imported into, or service provided in, a Special Economic Zone or a Unit, to carry on the authorised operations by the Developer or entrepreneur; (b) exemption from any duty of customs, under the Customs Act, 1962 or the Customs Tariff Act, 1975 or any other law for the time being in force, on goods exported from, or services provided, from a Special Economic Zone or from a Unit, to any place outside India: (c) exemption from any duty of excise, under the Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or any other law for the time being in force, on goods brought from Domestic Tariff Area to a Special Economic Zone or Unit, to carry on the authorised operations by the Develop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing in force or in any instrument having effect by virtue of any law other than this Act.' of Special Economic Zones Act, 2005 that no other law can prevail over it. 7. It is on record that the required documentation was not available for the entire period of the dispute but, at the same time, it cannot be denied that at some point, the eligibility did exist. The procedural infirmities, for a shorter or longer time, does not in any way supplant the exemption accorded to the impugned supply of services. Furthermore, the findings of the adjudicating authority do not arrive at a conclusion that, but for the said procedural infirmities, the eligibility of the appellant to render such services without payment of tax was in question. In the lig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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