Wrongly Paid Service Tax under SEZ Act: CESTAT Remands Claim for Fresh Examination and Directs Refund

The CESTAT Hyderabad partly allowed Applabs Technologies Pvt Ltd's appeal for refund of service tax paid on services used within a Special Economic Zone (SEZ). Earlier rejected by both the refund authority and Commissioner (Appeals) on procedural grounds, the Tribunal noted that substantive rights under SEZ law shouldn't be denied due to technicalities. It remanded the matter for re-evaluation based on actual contract usage, directing that tax wrongly paid must be refunded.