Regarding
Exemption on Services Provided to SEZ Authorised Operations
Notification No. 12 / 2013-Service Tax, [F.No. B1/6/
2013-TRU], dated 1st July, 2013
G.S.R…….(E).–In exercise
of the powers conferred by sub-section (1) of section 93 of the
Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act) read
with sub-section 3 of section 95 of Finance (No.2), Act, 2004 (23 of
2004) and sub-section 3 of section 140 of the Finance Act, 2007 (22
of 2007) and in supersession of the notification of the Government of India in
the Ministry of Finance (Department of Revenue), No. 40/2012-Service Tax,
dated the 20th June, 2012, published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), vide number G.S.R. 482 (E),
dated the 20th June, 2012, except as respects things done or omitted to be done
before such supersession, the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby exempts the services on which
service tax is leviable under section 66B of the said Act, received by a unit
located in a Special Economic Zone (hereinafter referred to as SEZ Unit)
or Developer of SEZ ( hereinafter
referred to as the Developer) and used for the authorised operation from the
whole of the service tax, education cess, and secondary and higher education
cess leviable thereon.
2. The exemption shall be provided by way of refund of service tax
paid on the specified services received by the SEZ Unit or the Developer and
used for the authorised operations:
Provided that where the specified services received by the SEZ Unit or the
Developer are used exclusively for the authorised operations, the person liable
to pay service tax has the option not to pay the service tax ab initio,
subject to the conditions and
procedure as stated below.
3. This exemption shall be
given effect to in the following manner:
(I) The SEZ Unit or the Developer shall get an
approval by the Approval Committee of the list of the services as are required
for the authorised operations (referred to as the ‘specified services’
elsewhere in the notification) on which the SEZ Unit or Developer wish to claim
exemption from service tax.
(II) The ab-initio
exemption on the specified services received by the SEZ Unit or the Developer
and used exclusively for the authorised operation shall be allowed subject to
the following procedure and conditions, namely:-
(a) the SEZ Unit or the Developer shall furnish a
declaration in Form A-1, verified
by the Specified Officer of the SEZ, along with the list of specified services
in terms of condition (I);
(b)
on the basis of
declaration made in Form A-1, an
authorisation shall be issued by the jurisdictional Deputy Commissioner of
Central Excise or Assistant Commissioner of Central Excise, as the case may be
to the SEZ Unit or the Developer, in
Form A-2;
(c) the SEZ Unit or the Developer shall provide a
copy of said authorisation to the provider of specified services. On the basis
of the said authorisation, the service provider shall provide the specified
services to the SEZ Unit or the Developer without payment of service tax;
(d) the SEZ Unit or the Developer shall furnish to
the jurisdictional Superintendent of Central Excise a quarterly statement, in Form A-3, furnishing the details of
specified services received by it without payment of service tax;
(e) the SEZ Unit or the Developer shall furnish an
undertaking, in Form A-1, that in
case the specified services on which exemption has been claimed are not
exclusively used for authorised operation or were found not to have been used
exclusively for authorised operation, it shall pay to the government an amount
that is claimed by way of exemption from service tax and cesses along with interest
as applicable on delayed payment of service tax under the provisions of the
said Act read with the rules made
thereunder.
(III) The refund of service tax on
(i) the specified services that are not exclusively used for
authorised operation, or
(ii) the specified services on which ab-initio exemption is admissible but not claimed,
shall be allowed subject to the following
procedure and conditions, namely:-
(a) the service tax paid on the specified services
that are common to the authorised operation in an SEZ and the operation in
domestic tariff area [DTA unit(s)] shall be distributed amongst the SEZ Unit or
the Developer and the DTA unit (s) in the manner as prescribed in rule 7 of the
Cenvat Credit Rules. For the purpose of distribution, the turnover of the SEZ
Unit or the Developer shall be taken as the turnover of authorised operation
during the relevant period.
(b) the SEZ Unit or the Developer shall be entitled
to refund of the service tax paid on (i) the specified services on which ab-initio exemption is admissible
but not claimed, and (ii) the amount
distributed to it in terms of clause (a).
(c) the SEZ
Unit or Developer who is registered as an assessee under the Central Excise
Act, 1944 (1 of 1944) or the rules made thereunder, or the said Act or the
rules made thereunder, shall file the claim for refund to the jurisdictional
Deputy Commissioner of Central Excise or Assistant Commissioner of Central
Excise, the as the case may be, in Form
A-4;
(d) the amount indicated in the invoice, bill or,
as the case may be, challan, on the basis of which this refund is being
claimed, including the service tax payable thereon shall have been paid to the
person liable to pay the service tax thereon, or as the case may be, the amount
of service tax payable under reverse charge shall have been paid under the
provisions of the said Act;
(e)
the claim for refund
shall be filed within one year from the end of the month in which actual
payment of service tax was made by such Developer or SEZ Unit to the registered service provider or such
extended period as the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise, as the case may be, shall permit;
(f) the SEZ Unit or the Developer shall submit only
one claim of refund under this notification for every quarter:
Explanation.- For the purposes of this notification “quarter”
means a period of three consecutive months with the first quarter beginning
from 1st April of every year, second quarter from 1st
July, third quarter from 1st October and fourth quarter from 1st January of
every year.
(g)
the SEZ Unit or the
Developer who is not so registered under the provisions referred to in clause
(c), shall, before filing a claim for refund under this notification, make an application
for registration under rule 4 of the Service Tax Rules, 1994.
(h) if there are more than one SEZ Unit registered
under a common service tax registration, a common refund may be filed at the
option of the assessee.
(IV) The SEZ Unit or Developer, who intends to avail
exemption or refund under this notification, shall maintain proper account of
receipt and use of the specified services, on which exemption or refund is
claimed, for authorised operations in the SEZ.
4. Where any sum of service tax paid on specified services is
erroneously refunded for any reason whatsoever, such service tax refunded shall
be recoverable under the provisions of the said Act and the rules made there
under, as if it is recovery of service tax erroneously refunded;
5. Notwithstanding anything contained in this notification, SEZ Unit
or the Developer shall have the option not to avail of this exemption and
instead take CENVAT credit on the specified services in accordance with the
CENVAT Credit Rules, 2004.
6. Words and expressions used in this notification and defined in the
Special Economic Zones Act, 2005 (28 of 2005) or the rules made thereunder, or
the said Act, or the rules made there under shall apply, so far as may be, in
relation to refund of service tax under this notification as they apply in
relation to a SEZ.
7. This notification shall come into force on the date of its publication in
the Gazette of India
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