SEZ refund claims require approved services for authorised operations; unapproved imported services under reverse charge do not create entitlement.

A Special Economic Zone unit's refund claim for service tax paid under reverse charge on imported services failed because the disputed services were not shown to be covered by the Development Commissioner's approved list for authorised operations. The payment was made under a residuary service code, but it was not established as Business Auxiliary Service and was not otherwise approved for SEZ use. In the absence of such approval, tax payment alone did not create a refund entitlement, and the rejection of the refund claim was upheld.

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Issues: Whether the appellant, a Special Economic Zone unit, was entitled to refund of service tax of Rs. 7,66,804 paid under Reverse Charge Mechanism on imported services for use in authorized operations.

Analysis: The refund claim turned on whether the impugned services were covered by the list of services approved by the Development Commissioner for authorized operations. The record showed that the disputed payment under the residuary service code was not established as Business Auxiliary Service and was not included in the approved list. In the absence of approval for use of the said services in authorized operations, the tax payment did not by itself create entitlement to refund.

Conclusion: The appellant was not entitled to refund of Rs. 7,66,804; the rejection of that refund claim was upheld.

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