Refund Claim Filed Under Regular Notification Instead of SEZ One Treated as Procedural Lapse: CESTAT Allows ₹2.92 Cr Refund

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has treated the filing of a refund claim under the wrong notification as a curable procedural lapse and allowed a substantial refund of Rs 2.92 crore. The case involved a company operating within a Special Economic Zone (SEZ) that had filed its refund claim under a regular export notification instead of the specific notification meant for SEZs. The department had rejected the claim on this technical ground. However, the CESTAT observed that the assessee was substantively eligible for the refund and had complied with all other conditions. It held that denying a legitimate benefit due to a procedural error, which did not cause any revenue loss, would be unjust. This pragmatic ruling emphasizes that substance should prevail over form in tax matters, providing significant relief to the exporter.