Delayed SEZ service approval cannot, by itself, defeat refund under Notification No. 12/2013-ST.

Refund of service tax under Notification No. 12/2013-ST was stated not to be denied merely because approval of the list of services for SEZ operations was issued after the refund period. Where the assessee had applied for approval in advance and the competent authority granted it later, the delay was treated as administrative rather than substantive. On that basis, the absence of approval at the time of refund processing did not by itself defeat the claim, and the notification benefit remained available for services already applied for and subsequently approved.

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Issues: Whether refund of service tax under Notification No. 12/2013-ST could be denied merely because approval of the list of services for SEZ operations was granted after the period for which refund was claimed.

Analysis: The appellant had applied for approval of the services well before the relevant transactions and the approval was later granted by the competent authority. The dispute turned on whether the later issuance of approval defeated the refund claim. Following the earlier Tribunal view on identical facts, the operative consideration was that the application had been made in advance and the delay in grant of approval was only administrative. The absence of approval at the time of refund processing did not justify denial where the claim related to services already applied for and subsequently approved.

Conclusion: The refund could not be rejected solely on the ground of delayed approval, and the assessee was entitled to the benefit of the notification.

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