Relief to Adani Power Ltd: CESTAT allows Refund of Service Tax paid on Services utilized in SEZ for Authorized Operations [Read Order]

The CESTAT, Ahmedabad bench, while dismissing an appeal by the service tax department against Adani Power Ltd., has allowed refund of service tax paid on the services utilized in SEZ for authorized operations in some of the services.

The department alleged that the respondent-Company has wrongly classified the services under the categories other than the actual services provided by the service providers. The services provided by the service providers were not included in approval list; hence the respondent has declared such services under the categories, which were included in the approval list, they argued.

A two-member bench comprising Member (Judicial), Mr. Ramesh Nair and Member (Technical), Mr. P. Anjani Kumar ruled in favour of the assessee and held that “As regard the contention of revenue that Commissioner (Appeals) has erred by ignoring the procedural lapses viz. incorrect address, incomplete address, address not mentioned. In Some case the service provider mentioned the address of Sambhav Building. As per the condition of the Notification, the service should be utilized within SEZ, hence the address of SEZ is mandatory requirement. Hence such services cannot be considered as utilized in relation to authorized operation. On perusal of the impugned order, We find that the Commissioner (Appeals) after going through the impugned Order-in-Original has passed a detailed order and thereafter set aside the Order-in-Original.”

Dismissing the appeal filed by department, the Tribunal held that “After considering the submission and records and the facts on record, we do not find any infirmity in the impugned order passed by the Commissioner (Appeals) and, therefore, we uphold the same.”

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