Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
North Block, New Delhi
25th November, 2014
Chief Commissioners of Central Excise and Service Tax (All),
Commissioners of Service Tax (All),
Commissioners of Central Excise and Service Tax (All).
Subject: Procedure of service tax refund/exemption to SEZ-
Certain representations have been received through Ministry of Commerce
raising the issue that SEZ unit or developer has to approach two authorities (the SEZ
authority and with the Jurisdictional Service Tax authority) for upfront exemption
under notification No. 12/2013 dated 01.07.2013 as amended.
2. The issue has been examined. The procedure prescribed under the notification No.
12/2013 dated 01.07.2013 as amended is for proper accounting and monitoring of
benefit availed by SEZ Unit and developer under the exemption. Further compliance
verification at the service provider's end (in domestic tariff area) would only be feasible
if an institutional mechanism for accounting and verification procedure is in place.
However, SEZ units and developer may, if they so desire, route their application for
issuance of authorization by department through the specified officer of SEZ instead of
submitting directly to the department. Similarly SEZ units and developer, may also
route quarterly statement in Form A-3 through the specified officer in the SEZ.
Notification No. 12/2013 dated 01.07.2013 as amended does not put any restriction in
3. Accordingly the field formations should not object if such requests/intimations are
routed through the specified officer in the SEZ.
Dr. Abhishek Chandra Gupta
(Technical Officer, TRU)
Copy to: 1. Director General (Service Tax), Director General (Audit).
2. Director General (Export Promotion).
3. Joint Secretary (Customs)