#SEZ exemption

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 Chennai rules that reimbursable expenses like terminal handling and demurrage charges cannot be taxed if recovered on actual cost basis without a consignment note, aligning with Supreme Court precedent. This shields logistics and forwarding agents from double taxation on pass-through costs, clarifying the scope of reverse charge liability under GTA services prior to May 2015.