TMI Blog2023 (10) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... hysically rendered but to the extent of deployment in pursuit of carrying out authorized operations and, that too, in accordance with the Special Economic Zones Rules, 2006. Authorized operations is defined in section 2(c) of Special Economic Zones Act, 2005 and any demand made under section 73 of Finance Act, 1994 without ascertainment of usage for authorized operations , thus defined, lacks authority of law. It has never been the case of Revenue that such exercise had been carried out by the adjudicating authority and found wanting. It is, thus, all too clear that the present application has been made without comprehending of the scope of section 26(2) of Special Economic Zones Act, 2005. There can be no claim that Finance Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 35C(2) of Central Excise Act, 1944 though usually not to be resorted to after placing themselves in appellate jurisdiction. Also bizarre is the insistence of Revenue that it has been compelled to relegate the dispute back before the Tribunal only upon direction of the Hon ble Supreme Court. A perusal of the order in our records leaves no room for doubt that it was the Learned Counsel for Revenue who sought indulgence of the Hon ble Supreme Court to withdraw their appeal for pursuing review/rectification with the Tribunal which was granted. We take exception to the manner in which Revenue has attempted to portray the actual sequence of events. 2. It is also surprising that realization of availability of review/rectification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 26 of Special Economic Zones Act, 2005 or contemplated in Rule 31 of Special Economic Zones Rules, 2006. The demand on the appellant in relation to services provided after January 2006 is set aside. For the two preceding months, the appellant shall be accorded the exemption if it cannot be established that services were rendered to a facility of the SEZ promoter outside the Zone. Penalties are also set aside. which is now contended by Revenue as having been rendered without the Special Economic Zones Act, 2005 in its fullness. It is mystifying that Revenue, which was not in appeal before the Tribunal or even with memorandum of cross-objections, can venture to set out the framework for disposal in an appeal filed by an assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cocooned world of administration of tax has blindsided the applicant into perceiving operation of section 26(2) and section 58 of Special Economic Zones Act, 2005 within the administrative rubric resorted to in Department of Revenue for operationalising the enabling provisions of taxing statutes. 6. The Special Economic Zones Act, 2005 provides for exemptions from duties and taxes on goods and services through 26. Exemptions, drawbacks and concessions to every Developer and entrepreneur. (1) Subject to the provisions of sub-section (2), every Developer and the entrepreneur shall be entitled to the following exemptions, drawbacks and concessions, namely: (a) exemption from any duty of customs, under the Customs Act, 1962 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es transaction tax leviable under section 98 of the Finance (No. 2) Act, 2004 (23 of 2004) in case the taxable securities transactions are entered into by a non-resident through the International Financial Services Centre; (g) exemption from the levy of taxes on the sale or purchase of goods other than newspapers under the Central Sales Tax Act, 1956 (74 of 1956) if such goods are meant to carry on the authorised operations by the Developer or entrepreneur. (2) The Central Government may prescribe, the manner in which, and, the terms and conditions subject to which, the exemptions, concessions, drawback or other benefits shall be granted to the Developer or entrepreneur under sub-section (1). The terms and conditions referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of re-grafting from Central Excise Act, 1944 in 2003. Notification no. 4/204-ST dated 31st March 2004 was, thus, issued as a facilitating exemption and, that too, under section 93 of Finance Act, 1994 for zero rating of taxes and duties without reference to those statutory provisions relating to special economic zones. 9. As 58. Savings. All rules made or purporting to have been made or all notifications issued or purporting to have been issued under any Central Act relating to the Special Economic Zones shall, in so far as they relate to matters for which provision is made in this Act or rules made or notification issued thereunder and are not inconsistent therewith, be deemed to have been made or issued under this Act as if th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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