SEZ service tax refund remains admissible for authorised operations despite services being used wholly within the zone.

Refund of service tax on services used for authorised operations in a Special Economic Zone was treated as admissible under Notifications No. 9/2009-Service Tax and 15/2009-Service Tax. The Tribunal followed its earlier decision in the same appellant's case and found no fresh ground to depart from that view. It held that the notifications operate as a facilitative refund mechanism consistent with the immunity and exemption framework under the Special Economic Zones Act, 2005, and cannot be read to deny refund merely because the services were consumed wholly within the SEZ after tax had been paid.

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Issues: Whether refund of service tax paid on services used in relation to authorized operations in a Special Economic Zone was allowable under Notifications No. 9/2009-Service Tax and 15/2009-Service Tax.

Analysis: The Tribunal noted that the issue was already covered in the appellant's own earlier case and that no fresh ground was shown to depart from that view. The earlier decision treated the notifications as a facilitative refund mechanism operating consistently with the immunity/exemption available under the Special Economic Zones Act, 2005. It was held that the notifications could not be read to deny refund merely because the services were consumed wholly within the SEZ, where service tax had been remitted on such transactions.

Conclusion: Refund was held to be admissible and the contrary orders could not be sustained.

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