Refund claim under SEZ service notification survives delay and clerical invoice error where approval was sought before filing.

A SEZ unit's refund claim under Notification No. 40/2012-ST was treated as maintainable where the assessee had sought Development Commissioner approval for rent-a-cab service used in authorised operations and filed the claim promptly after approval. The notification permitted extension of the prescribed time, so the delay caused by the approval process was capable of condonation. A clerical error in the invoice description, where the place was stated incorrectly, did not defeat the claim because the service was in fact used to transport employees for the authorised operation. The refund rejection on limitation and invoice description grounds was therefore unsustainable.

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Issues: Whether the refund claim under Notification No. 40/2012-ST dated 20.06.2012 could be rejected as time-barred and for a wrong invoice description when the assessee had sought approval from the Development Commissioner before filing the refund application and the notification permitted extension of time.

Analysis: The appellant was a Special Economic Zone unit and had applied for approval of rent-a-cab service for authorised operations. The approval was received later, and the refund application was filed immediately thereafter. The notification specifically contemplated permission to file the refund claim beyond the prescribed period, and the delay was attributable to the time taken by the Development Commissioner in granting approval. The incorrect mention of the place in the invoice did not alter the fact that the service was used for transporting employees for the authorised operation. In these circumstances, the delay was held to be capable of condonation and the refund could not be denied on the ground of limitation or on the basis of the clerical invoice error.

Conclusion: The refund claim was held to be maintainable and the rejection of refund was unsustainable, in favour of the assessee.

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