#SEZ Act

A SEZ unit’s claim for service tax refund was allowed despite filing beyond the six-month limit, because the SEZ Act’s substantive exemption prevails over procedural time bars. This clarifies that revenue authorities cannot reject refunds solely on limitation grounds for SEZ entities. The ruling benefits all SEZ manufacturers seeking tax refunds for pre-2011 periods.

CESTAT Chandigarh holds that Special Economic Zone units are not bound by the one-year limitation period in Finance Act notifications for service tax refunds, as their entitlement arises from statutory exemption provisions under the SEZ Act. This clarifies that SEZ-specific refund rights operate independently of general time bars, benefiting exporters and SEZ-based service recipients with delayed claims.

CESTAT Hyderabad rules that technical invoice flaws - such as mismatched addresses or missing originals - cannot override a SEZ unit’s substantiated claim for service tax refund, provided the services were received, paid for, and used in authorized operations. This reinforces the principle of purposive interpretation in SEZ incentives, protecting genuine beneficiaries from bureaucratic overreach.

CESTAT rules that sales of MS scrap to SEZ units are exempt from customs duty under Section 26(1)(e) of the SEZ Act, 2005. The tribunal set aside the demand, interest, and penalties, holding that the department violated principles of natural justice by not providing a fair hearing to the appellant.

CESTAT rules that supplies to SEZ units under Section 26(1)(e) of the SEZ Act are exempt from customs duty, and any penalty imposed without proper notice or evidence violates principles of natural justice. The tribunal set aside a ₹72 lakh demand, reinforcing that procedural fairness is non-negotiable in duty exemption cases affecting traders and SEZ operators.

The CETAT holds that Section 26(1)(e) of the SEZ Act, 2005 overrides conditional exemptions under Notification No. 4/2004-ST, granting automatic service tax exemption for services provided to SEZ units.