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2019 (4) TMI 1693 - AT - Service Tax100% SEZ - Refund of service tax - input services - business auxiliary service - refund denied on the ground that the said service is not mentioned in the list of specified service approved by the approval committee for the authorized operation under SEZ - HELD THAT:- Perusal of sub-clause (iii) (a) of the Notification makes it clear that the refund shall be allowed on the service tax paid on the specified service that are common to the authorized operations in SEZ - No doubt, the service was not approved at the time it was rendered, but the requisite ingredient for claiming refund as per the aforesaid clause is the time when service tax for the specified service is paid. The service tax was paid after the business support service, as received by the appellant, was categorized as specified service. Since, it was exclusively for authorized operations, the appellant was otherwise entitled for ab initio exemption but for the service to be specified later than the period during which it was received. Since the liability under reverse charge mechanism was discharged only after approval, the period during which the service was rendered is not relevant for claiming the benefit of this Notification. There is no lacuna on part of the appellant while claiming the refund except for a procedural lapse. It has been settled law that substantive benefit as that of tax exemption irrespective by way of refund cannot be denied merely due to the procedural lapse. Appeal allowed - decided in favor of appellant.
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