SEZ service tax exemption cannot be denied for delayed Form A-1 and A-2 filing when supply to the unit is undisputed.

Service tax exemption for taxable services supplied to an SEZ unit for authorised operations could not be denied merely because Forms A-1 and A-2 were not submitted contemporaneously. The undisputed supply of services to the SEZ unit established the substantive entitlement, and the forms were treated as procedural requirements only. Later production of the forms could not defeat the exemption, and the SEZ framework prevailed over any inconsistent fiscal demand. The service tax demand was therefore not sustainable, and the exemption was upheld.

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Issues: Whether service tax exemption could be denied for services admittedly provided to an SEZ unit merely because Form A-1 and Form A-2 were not submitted at the relevant time.

Analysis: The service recipient and the consumption of services in the Special Economic Zone were not disputed. The exemption under the SEZ framework was held to be available for taxable services provided to a developer or unit for authorised operations. The denial was based only on non-production of Forms A-1 and A-2. The Tribunal held that where the substantive fact of supply to the SEZ unit is established, later production of the forms cannot defeat the exemption. The forms were treated as procedural requirements, and the SEZ law was held to prevail over any inconsistent fiscal demand.

Conclusion: The exemption could not be denied on the ground of delayed or non-contemporaneous submission of Forms A-1 and A-2, and the service tax demand was not sustainable.

Final Conclusion: The appellant was held entitled to exemption for services rendered to the SEZ unit, and the demand raised against it was set aside.

Ratio Decidendi: Where services provided to an SEZ unit for authorised operations are undisputed, procedural non-compliance in submitting prescribed forms cannot defeat the substantive exemption.

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