Commissioner of Service Tax, Chennai (Presently GST & CCE Chennai South) Versus Southern Cyber Logistics Pvt Ltd
Service Tax
2018 (7) TMI 174 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 21-2-2018
Appeal No. ST/542/2011 – 40902/2018
Service Tax
Smt. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri K. P. Muralidharan, AC (AR) For the Appellant
None For the Respondent
ORDER
Per Bench
1. Brief facts are that respondents are engaged in business of Tour operator Services. They are providing services as cab Operator to IT/ITES SEZ companies by way of picking and dropping the employees. Department was of the view that respondents are liable to pay service tax on the consideration received for the period 4/2007 to 9/2008 and that respondents are not eligible for exemption as per notification 4/2004 cit. 31.03.2004. Show Cause Notice was issued proposing to demand service tax, interest and impose penalties. After due
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y delineated duty free enclave and shall be deemed to be foreign territory for the purpose of trade operation. The SEZ are developed for the purpose of promotion of exports to earn much needed foreign exchange and for overall economic development of our country, The SEZ Act provides exemption from all taxes on any goods or services exported out of or imported into or procured from Domestic Tariff Area. These facilities are offered to the industry to provide them with a level playing field when they compete with foreign players in foreign markets. In the instant case the transport service provided by the appellant is ultimately consumed by the SEZ units. Just like Courier, Telecommunication and Manpower recruitment services, this transportation service is also provided by service providers from out side SEZ and the provision of service commence from outside the SEZ premises, but ends within the SEZ units and construed to be consumed within SEZ premise. It is also seen that in the instan
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and to extent benefit under different provisions for the same transaction on the other hand
4. The Commissioner (Appeals) has thus set aside the demand with a view to give effect to the intent of the notification and the SEZ Act. The SEZ are developed for the purposes of promotion of exports to earn foreign exchange. There is no dispute that the impugned Services are used by SEZ unit. Merely because the nature of the service is to pick up and drop the employees and vice versa it cannot be said that the services are consumed outside the unit Notification 4/2004 exempts service Tax on services provided by a service provider for consumption of such services within SEZ. The department seeks to construe the notification restricting its applicability to such services which are wholly or exclusively used in SEZ This would defeat the purpose of amendment of definition of export which includes export made to SEZ also. The intention of the notification as well as Section 26 of the SEZ Act is
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