Services rendered to SEZ units/ Developers and Rule 6 of CENVAT Credit Rules 2004
AS per Rule 6 (1) of the CENVAT Credit Rules 2004, CENVAT Credit shall not be allowed on the inputs or input services used in the manufacture of exempted goods or provision of exempted services. Certain categories of exempted goods are excluded from the purview of Rule 6(1) which are mentioned in Rule 6(6). For example,
(6) The provisions of sub-rules (1), (2), (3) and (4) shall not be applicable in case the excisable goods removed without payment of duty are either-
(i) cleared to a unit in a special economic zone or to a developer of a special economic zone for their authorized operations
But, what about the services rendered to the units in SEZs/ Developer of SEZ, which are exempted by Notification No Dated 3rd March 2009? As per this notification, services consumed wholly in the SEZs are exempted. While the provisions of Rule 6(1) are excluded for supply of goods to SEZ units/ Developers, when it comes to services, no such exclusion is provided with the result that the suppliers of services to SEZ units / Developers either should not avail credit of inputs or input services used for such services rendered to SEZ units/ Developers or follow the procedure under sub-rules (2), (3) or (3A), which is discriminatory against the supplier of services.
Further, in respect of the services not wholly consumed within the SEZs, the exemption under Notification 9/2009-ST operates through refund of service tax paid by the service provider. In such cases, whether the provisions of Rule 6 (1) are attracted for the supplier of the services?