Supply of Service to SEZ without LUT and Without Payment of Tax

[KUMAR Narasimhan]

Mr A does a Service to SEZ without payment of Tax, however he don't have LUT, since from FY 17-18 to 18-19. He filed all his return without LUT and without payment of Tax.

From 19-20 to 20-21 he has not filed his return and LUT also not applied for this period..

Now it has been identified.

Question

Now through DRC-03 the tax amount to be paid for FY 17-18 to 18-19 along with Interest.(Refund can't be claimed, because 2 year due date to claim refund is expired)

With respect to 19-20 to 20-21, those invoices were unprocessed till now, if possible these Invoices were processed in April 2021 along with the interest and we can go for a refund claim?

LUT applied for the FY 21-22.

Please clarify sir.

AI Summary

Zero-rated supply without LUT may be condoned, enabling ex post facto zero-rating and refund claims.
Supply to SEZ without a Letter of Undertaking may be regularised: tax for earlier periods can be paid with interest (e.g., via DRC-03), and refund claims for later unprocessed periods may be allowed. Circulars permit condonation of delayed LUT filing and recognition of zero-rated supplies ex post facto, treating the lapse as procedural and enabling refund or zero-rating relief subject to conditions.