Refunds Granted for Construction, CHA, and Trenching Services within SEZ Operations

The Tribunal allowed the appeals, granting refunds for construction service, CHA service, and trenching work consumed within or intended for SEZ operations. The decision emphasized refund eligibility based on service consumption within SEZ, irrespective of Notification No. 09/2009, highlighting the core purpose of services within the SEZ.

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Issues:
Refund claim rejection for construction service wholly consumed within SEZ under Notification No. 09/2009-ST.
Refund claim rejection for CHA Service due to various costs mentioned in the invoice.
Refund claim rejection for trenching work for irrigation network partly outside SEZ under Notification No. 09/2009-ST.

Analysis:
1. Construction Service Refund Rejection:
The Adjudicating Authority rejected the refund claim for construction service consumed within SEZ, stating it was not governed by Notification No. 09/2009. However, the Tribunal found that if service tax is paid for services consumed within SEZ, even if not payable, it should be refunded without applying the said notification.

2. CHA Service Refund Rejection:
The refund for CHA Service was denied based on the assumption that various costs mentioned in the invoice indicated services beyond CHA service. The Tribunal disagreed, emphasizing that despite cost bifurcation, the service was solely provided by CHA for CHA service, making the refund admissible.

3. Trenching Work Refund Rejection:
Regarding trenching work for irrigation partly outside SEZ, the refund was rejected under Notification No. 09/2009. The Tribunal clarified that as the construction was exclusively for SEZ operations, even if partly outside, the refund was permissible as it was intended for SEZ use.

In conclusion, the Tribunal allowed the appeals, setting aside the impugned orders and granting the refunds based on the services being consumed within SEZ or intended for SEZ operations. The decision highlighted the eligibility for refunds even without strict application of Notification No. 09/2009, emphasizing the core purpose and consumption of the services within the SEZ.

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