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2023 (9) TMI 196 - AT - Service TaxRefund of service tax - services used in authorized operations in SEZ during the period October 2010 to December 2010 - whether the claim for refund made in terms of the notification No 9/2009-ST dated 03.03.2009 can be denied just for the reason that the the taxable services in respect of the which the claim has been made, are not mentioned in the list of specified services approved by the SEZ authorities - HELD THAT:- The scheme of SEZ Act, provides for exemption from payment of all taxes to the developer of SEZ or the Units operating in the SEZ. Notification No 9/20009-ST does not provide for any further exemption but provides a mechanism for operation of the said scheme, where a service provider has provided the taxable services to the Unit located in SEZ, on payment of service tax. The conditions specified in the sad notification need to be read accordingly. Article 265 of the Constitution clearly lays down that “No taxes can be levied without the authority of law.” When the developer of SEZ and units located in the SEZ have been given exemption from payment of all the taxes then any levy and collection of the taxes from such units is without any authority in law and thus contravenes the Article 265. In such a scenario, the amount so collected needs to be refunded to the person from whom such tax has been collected. In the present case revenue has not disputed the receipt of these services by the SEZ Unit, hence denial of the refund claim in respect of these three services for the reason that they did not find mention in the list of specified services approved by the SEZ authority cannot be upheld. The issue involved in the present appeal is no longer res-integra. Similar view has been expressed by the tribunal in M/S. METLIFE GLOBAL OPERATIONS SUPPORT CENTER PRIVATE LIMITED VERSUS COMMISSIONER, SERVICE TAX [2020 (12) TMI 1069 - CESTAT NEW DELHI] where it was held that Learned counsel for the appellant submitted the substantive benefit of the service tax exemption provided under section 26 of the SEZ Act and rule 31 of the SEZ Rules cannot be denied by any procedural requirement under a notification - This submission of learned counsel for the appellant deserves to be accepted. There are no merits in the impugned order and the same is set aside - appeal allowed.
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