𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗘𝗭 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗥𝗲𝗳𝘂𝗻𝗱 𝗖𝗹𝗮𝗶𝗺𝘀 📢 The Tribunal held: "Service tax is inherently exempt for SEZ services, making related exemption notifications redundant. Amounts paid as service tax by SEZ units or ISD should be treated as deposits and refunded."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. Cummins Turbo Technology 𝗜𝘀𝘀𝘂𝗲: Whether the appellant is entitled to service tax refunds and interest, regardless of the time limit set in the notification?

𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The SEZ unit’s corporate office, as Input Service Distributor (ISD), distributed CENVAT credit for services received by SEZ and domestic units. Refund claims were filed under Notification No. 12/2013-ST.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that Section 51 of the SEZ Act exempts SEZ services from service tax, rendering Finance Act exemption notifications redundant. Payments labeled as service tax are deposits, eligible for refund without time restrictions. However, interest provisions under the Finance Act do not apply to SEZ units. Appeal allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Cummins Turbo Technology vs. Commissioner of Customs, Central Excise & Central Tax, Indore 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 50349 of 2018 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 30 October 2023 📜 This ruling underscores that service tax payments by SEZ units are deposits, refundable without time restrictions or interest under the Finance Act.