The appellant, being the developer/co-developer in a Special...

The appellant, being the developer/co-developer in a Special Economic Zone (SEZ), is entitled to a refund of service tax paid in relation to their authorized operations. The CESTAT Ahmedabad Bench, relying on previous decisions, held that the substantive benefit of service tax exemption u/s 26 of the SEZ Act cannot be negated by notifications issued under other enactments. The procedural and technical objections raised by the revenue were rejected. Once the tax was charged, collected, and paid, the recipient cannot be burdened to explain the levy. The appellant successfully established eligibility for a refund of service tax paid for transportation of passengers' services within the SEZ. Consequently, the appellant is entitled to the refund of service tax paid for services used in authorized SEZ operations, and the appeals were allowed.

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