2019 (6) TMI 859 - AT - Service Tax

Refund of Swatchh Bharat Cess (SBC) - whether the appellant is entitled for refund of Swatchh Bharat Cess (SBC) paid on the input services used for providing export service? - HELD THAT - The issue involved in these appeals is no more res integra as it stood covered in favour of the Appellants in view of a recent decision of the Tribunal in State Street Syntel Services Pvt Ltd vs. Commissioner of Central GST Central Excise, Mumbai 2019 (5) TMI 1568 - CESTAT MUMBAI where it was held that Swachh Bharat Cess paid on input services has to be available as Cenvat Credit and the same can be discharged by utilising Cenvat Credit and the appellant is therefore entitle for the refund of it - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Refund of Swachh Bharat Cess (SBC) paid on input services used for providing export service.

Analysis:

Issue 1: Refund of Swachh Bharat Cess (SBC)
The primary issue in this case revolved around whether the appellant is entitled to a refund of Swachh Bharat Cess (SBC) paid on input services used for providing export services. The Adjudicating Authority had rejected the refund claims on the grounds of the absence of a specific provision for such refunds. However, the learned Commissioner upheld this decision, stating that there was no notification granting a refund of Swachh Bharat Cess. The Appellate Tribunal, after hearing arguments from both sides, referred to a recent decision in a similar matter where the Tribunal allowed the appeal of the assessee. The Tribunal analyzed Section 119 of the Finance Act, 2015, which outlines the levy and collection of Swachh Bharat Cess for specific purposes related to promoting cleanliness initiatives. The Tribunal also referred to past legal precedents regarding the nature of cess, tax, and duties, highlighting that certain levies like sugar cess and automobile cess were considered duties of excise, making them eligible for refunds. The Tribunal concluded that Swachh Bharat Cess, being akin to a service tax, should be eligible for Cenvat Credit, allowing the appellant to claim a refund. The Tribunal emphasized that procedural lapses in filing separate claims should not deny the appellant the substantial benefit of a refund.

Decision:
Based on the analysis and legal precedents discussed, the Appellate Tribunal decided in favor of the appellant, allowing the appeal and granting consequential relief, if any. The Tribunal set aside the impugned order and acknowledged the appellant's entitlement to a refund of Swachh Bharat Cess paid on input services used for providing export services. The decision was pronounced in court on 14/06/2019, thereby resolving the issue in favor of the appellant and providing clarity on the admissibility of such refunds under the relevant legal framework.

This comprehensive analysis of the judgment highlights the legal interpretation, precedents, and reasoning behind the decision to allow the refund claim of Swachh Bharat Cess paid by the appellant on input services utilized for export services.