Form A-1 under SEZ refund rules applies only where the claimant has no domestic tariff area business

Form A-1 under Notification No. 17/2011-ST is mandatory only for an SEZ developer or unit that carries on no business other than SEZ operations. Where the claimant also conducts domestic tariff area operations, the declaration contemplated in the form cannot be insisted upon because it would require a false statement. Read with the relevant refund conditions, the form-based requirement applies only where applicable to the claimant's business profile. On that basis, the contrary view was set aside and the refund claim was remanded for fresh examination after giving a reasonable opportunity of hearing.

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Issues: Whether a Developer or Unit of SEZ carrying on both SEZ operations and domestic tariff area operations is required to furnish Form A-1 under Notification No. 17/2011-ST for claiming refund of service tax paid on input services used for authorised operations in the SEZ.

Analysis: The condition in para 2(c) of Notification No. 17/2011-ST applies only where the SEZ Developer or Unit does not own or carry out any business other than SEZ operations. The accompanying form itself contemplates a declaration that the claimant does not carry on any other business in the domestic tariff area. Since the appellant also carried on DTA operations, insisting on Form A-1 would require a false declaration. Reading para 2(c) along with para 3(f)(i) and para 3(h), the declaration is required only where applicable and not invariably in every refund claim.

Conclusion: The requirement to furnish Form A-1 was held to be inapplicable to the appellant and the contrary finding was set aside.

Final Conclusion: The matter was remanded to the original authority for fresh examination of the refund claim after granting a reasonable opportunity of hearing, with the finding on Form A-1 decided in favour of the appellant.

Ratio Decidendi: A Form A-1 declaration under Notification No. 17/2011-ST is mandatory only for an SEZ unit or developer that carries on no business other than SEZ operations, and cannot be insisted upon where the claimant also conducts domestic tariff area operations.

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