Case Details: Advait Mining and Constructions LLP (2025) 33 Centax 342 (A.A.R. - GST - Odisha)
Judiciary and Counsel Details
- S/Shri Harsh Vardhan & Pratima Mohanty, Members
- Shri Prakhyat Surapaneni, C.A. for the Applicant
Facts of the Case
The applicant, engaged in logistics services, entered into a work order with a company for handling bauxite from mines in Odisha to railway sidings in Odisha, including loading into rakes. The service recipient company is a unit located in a Special Economic Zone (SEZ) and was issued a letter of approval for continued operation under the SEZ Scheme. The applicant sought an advance ruling, submitting that these services should qualify as zero-rated supply under Section 16(1)(b) of IGST and constitute inter-state supply. The matter was accordingly placed before the Authority for Advance Ruling (AAR), Odisha.
AAR Held
The AAR Odisha held that the supply of goods or services or both made to or by a SEZ developer or a SEZ unit shall be treated as supply in the course of inter-state trade or commerce, and such supply shall qualify as ‘Zero Rated Supply’. The AAR observed that services falling under Cargo Handling Service are default authorized for SEZ developers or units. It concluded that the supply satisfies the definition of zero-rated supply under Section 16, read with Section 7. Services provided by applicant to SEZ unit are zero rated supply and all terms and conditions under zero rated supply will be applicable to applicant in respect of supply in question.
