Refund of service tax on telecommunication services for SEZ authorised operations upheld under the refund notification.

Refund of service tax on telecommunication services used by a SEZ unit for authorised operations was held admissible under Notification No. 9/2009-ST. The Tribunal applied prior precedent recognising credit for landline and mobile telephone services when used for business purposes, and treated the telecommunication service as covered by the refund mechanism. On that basis, the denial of refund was found unsustainable and the claim was allowed.

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Issues: Whether refund of service tax paid on telecommunication service for a SEZ unit was admissible under Notification No. 9/2009-ST.

Analysis: The appellant was a SEZ unit carrying on authorised operations, and the dispute concerned only the refund claim of service tax on telecommunication service. The Tribunal noted that the issue stood covered by prior precedent allowing credit on landline and mobile telephone services where the services were used for business purposes. On that reasoning, the telecommunication service was treated as eligible for the refund benefit claimed.

Conclusion: The refund denial was unsustainable and the appeal was allowed in favour of the assessee.

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