Exemption Claim On Service Of Rent-A-Cab Provided In SEZ To Be Supported By Invoices: CESTAT

The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that exemption claim on service of rent-a-cab provided in Special Economic Zone (SEZ) to be supported by invoices.

The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) observed that the service of Rent-a-Cabs provided in SEZ is exempted however, though the assessee has claimed that it has submitted various documents such as balance sheet, ledger etc. both the lower authorities have denied the benefit for want of invoices which were not submitted by the appellant. Even when the bench asked to produce the invoice copy, the assessee was unable to provide the same.

The appellant/assessee states that it provides Rent-a-Cab service to SEZ as shown in the statutory records such as balance sheet, ledger etc. submitted to the Adjudicating Authority. However, despite all that the demand was confirmed by the Commissioner (Appeals).

The assessee contended that demand was not sustainable being the services provided to SEZ are exempted.

The tribunal stated that it is incumbent on the appellant to provide a copy of the invoice in support of their defence whether the service is provided in SEZ and it can be ascertained on the basis of the invoice by which it can be seen that the service recipient is an SEZ unit.

The tribunal while sustaining the demand held that the assessee has failed to provide invoice copies or any document by which it can be established that service is provided to SEZ.

Case Title: Bittu Travels Versus Commissioner of Central Excise & ST, Rajkot

Case No.: Service Tax Appeal No. 10526 Of 2014-Db

Date: 05.09.2023

Counsel For Appellant: Parth Rachchh

Counsel For Respondent: Anoop Kumar Mudvel

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