Recently Central Government has introduced new notification vide Notification No. 12/2013- Service Tax dated 1st July, 2013, in supersession of old notification No. 40/2012-Service Tax dt. 20th June, 2012, for more clarificatory procedures regarding outright exemption or refund of service tax paid on the specified services received by the SEZ unit or the Developer and used for the authorised operations.
Basically, the new notification has described the procedure more clarificatory by specifically distinguishing between below mentioned two categories:-
A. For claiming the ab-initio outright exemption on the specified services received by the SEZ unit or the Developer and used exclusively for the authorised operation;B. For 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
A gist of changes in the new procedure as compared to the earlier procedures is as under:-
| Old Notification | New Notification |
| Form A-2 was used by the registered assessee of Central Excise for filing the refund claim to jurisdictional AC /DC | But now, Form A-2 will be issued as an authorisation by the jurisdictional AC/Dc of Central Excise on the basis of declaration made in Form A-1 and |
| Form A-3 was filed before filing of refund claim, by the unit of a SEZ or developer who is not so registered as an assessee under Central Excise Act, 1944,for declaration to AC/ DC of Central Excise | Form A-3 is now being filed by the SEZ unit or developer to the jurisdictional superintendent of Central Excise as a Quarterly statement for furnishing the details of specified services received by it without payment of service tax. |
| Specified formula for calculation of Refund amount was mentioned. | Now, the distribution of credit of service tax paid will be based in the manner as prescribed in rule 7 of CENVAT Credit Rules, 2004 |
| Form A-2 was prescribed for claiming refund for registered assessees. | Now, in place of Form A-2, Form A-4 would be filed. |
Moreover now, the SEZ unit or the developer shall furnish an undertaking, in Form A-1 that in case the specified services on which the 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 as per provisions of the Act.
Please refer attached Annexure for further reference.
