𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗦𝗘𝗭 𝗖𝗦𝗥 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗿𝘂𝗹𝗲𝗱: "Service tax exemption for SEZ units does not require that services be consumed strictly within SEZ premises. CSR-related works contract services with a direct nexus to SEZ activities are eligible for exemption."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. ATC Tires Private Limited 𝗜𝘀𝘀𝘂𝗲: The appellant, a manufacturer operating in a Special Economic Zone (SEZ), was denied service tax exemption on works contract, security services, and vehicle rental on the grounds that these services were consumed outside the SEZ. The appellant argued that these services were part of CSR activities related to its SEZ operations.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that SEZ service tax exemptions apply to CSR-related services if they support authorized SEZ operations, even if used outside SEZ boundaries. Services like constructing dormitories and security for laborers were deemed integral to SEZ functioning, allowing the appeal and exempting the appellant from service tax.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. ATC Tires Private Limited vs. Commissioner of G.S.T. and Central Excise 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 40349 of 2021 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 10 August 2023 📜 This ruling affirms that SEZ units can claim service tax exemptions on services used for CSR activities directly linked to their operations, even if they extend beyond SEZ premises.