HARYANA VALUE ADDED TAX ACT, 2003

Section 7

Rates of tax on sale or purchase of goods in the State - Exemption from payment of tax - Individual industrial unit -

Assessee submitted a proposal to set up a Special Economic Zone (SEZ) and the said proposal was approved and notified by the Central Government vide Notification, dated 1-9-2008 and assessee was granted license to set up and develop SEZ as developer. Assessee awarded contract to M/s. A to assist in executing and undertaking construction activity in SEZ area as a co-developer. Principal Secretary issued clarification that developer or co-developer of a SEZ is not exempted from payment of VAT for setting up of unit in SEZ area. Tribunal allowed the appeal by holding that a developer and codeveloper of SEZ were entitled to exemption from payment of tax by virtue of section 11(1)(i) of the Haryana Special Economic Zone Act, 2005. Held: A perusal of section 7(6) shows that only an individual industrial unit undertaking the activity of setting up of the unit in a SEZ area has been exempted from payment of tax and not a developer or co-developer of a SEZ. According to section 11(1)(i) of the HSEZ Act, 'any goods exported out or imported into the SEZ have been exempted from payment of any tax duty, fees, cess or any other levies under any existing State Law including the Act.' Tribunal had noticed that developer or co-developer of a SEZ was not exempted from payment of tax under the Act by section 7(6) and only an individual unit/dealer has been exempted for setting up of the unit in SEZ area. Thus, no question of law arises in this appeal.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

SUBSCRIBE FOR FULL CONTENT