SEZ service tax refund cannot be denied for procedural omission when services were actually received and used for authorised operations.

Refund of service tax on input services used in a Special Economic Zone unit could not be denied merely because the services were not specifically listed in the approved authorised operations list, where they were admittedly received and wholly consumed within the SEZ for authorised operations. The Special Economic Zones Act, 2005, the Special Economic Zones Rules, 2006, and Notification No. 9/2009-ST were read as supporting exemption or refund for taxable services used in relation to authorised operations. Non-inclusion in the Development Commissioner's approval list was treated as a procedural lapse, not a substantive bar to refund entitlement. The denial of refund was therefore unsustainable, and relief followed.

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Issues: Whether refund of service tax on input services used in a Special Economic Zone unit could be denied on the ground that the services were not specifically included in the approved list for authorised operations and were wholly consumed within the SEZ.

Analysis: The adjudicating authority did not dispute that the services were received by the SEZ unit and consumed by it. The legal framework under the Special Economic Zones Act, 2005, the Special Economic Zones Rules, 2006, and Notification No. 9/2009-ST supports exemption/refund for taxable services used in relation to authorised operations in an SEZ. Non-inclusion of the services in the approval list of the Development Commissioner was treated as a procedural lapse and not a substantive ground to deny the refund.

Conclusion: The refund denial was unsustainable. The issue was decided in favour of the assessee and the appeals were allowed with consequential relief, if any.

Final Conclusion: Refund could not be refused merely for procedural deficiency when the services were admittedly received and used in the SEZ unit for authorised operations.

Ratio Decidendi: Procedural non-approval of services for authorised operations cannot defeat refund entitlement where the services are actually received and consumed in an SEZ for authorised operations under the governing exemption framework.

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