SEZ refund of service tax on authorised operations cannot be denied merely for delay when use is undisputed.

A Special Economic Zone unit's entitlement to refund of service tax on input services used for authorised operations was examined under Notification No. 17/2011-S.T. dated 01.03.2011. The Tribunal noted that refund depends on whether the services were used for authorised SEZ operations and whether the supporting approval and particulars are satisfied; where such use was not disputed, refund could not be denied merely because the claim was filed beyond the prescribed period. Following its earlier decision on identical facts in the same assessee's case, the Tribunal held that the Department's objections were untenable and granted consequential relief.

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Issues: Whether a Special Economic Zone unit was entitled to refund of service tax paid on input services used for authorised operations, including where the claim was filed beyond the prescribed period and the Department had relied on the SEZ refund notification conditions.

Analysis: The claim was governed by Notification No. 17/2011-S.T. dated 01.03.2011, which permits exemption/refund for taxable services used for authorised operations in an SEZ. The determining factors were whether the services were for authorised operations, whether the approval process and supporting particulars were satisfied, and whether the refund claim could be denied merely on the ground of delay when the use of input services for SEZ operations was not disputed. The order followed the Tribunal's earlier decision in the appellant's own case on identical facts, where refund had been allowed with consequential benefit.

Conclusion: The refund could not be denied on the grounds raised by the Department, and the impugned order was set aside. The appeals were allowed with consequential relief in favour of the assessee.

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