2020 (4) TMI 835 - AT - Service Tax

Refund of Swachh Bharat Cess - the cess paid on the input services used for providing export service - rejection of refund on the ground that there is no provision for refund of Swachh Bharat Cess paid on the input services used for providing export service - HELD THAT - The issue involved in this appeal is no more res integra in view of the decision of this Tribunal in M/S. STATE STREET SYNTEL SERVICES PVT. LTD. VERSUS COMMISSIONER OF CGST, NAVI MUMBAI 2019 (6) TMI 859 - CESTAT MUMBAI in which this Tribunal while discussing Section 119 of the Finance Act, 2015 and various case laws, by a detailed order allowed the Appeal filed by the Appellants therein and held that the Swachh Bharat Cess paid on input services has to be available as Cenvat Credit and the same can be discharged by utilizing Cenvat Credit and the appellant therein are entitle for refund of it. The Appellants are entitled for refund of Swatch Bharat Cess used for Export of Services - 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:
The Appeals were filed challenging the rejection of refund claims of Swachh Bharat Cess (SBC) paid on input services used for providing export service. The Adjudicating Authority rejected the refund claims citing the absence of a provision for such refunds. The learned Commissioner upheld the rejection, stating that there was no notification allowing refunds of SBC for export of services. However, the Appellant presented two Tribunal orders in their favor on the same issue. The Tribunal had previously decided in favor of the Appellant, allowing the refund of SBC on input services. The Tribunal referred to Section 119 of the Finance Act, 2015, and various case laws to support its decision. The Tribunal held that SBC paid on input services should be available as Cenvat Credit and can be refunded by utilizing the same credit. Therefore, based on the previous decisions and the circumstances of the case, the impugned order was set aside, and the Appellants were deemed entitled to a refund of Swachh Bharat Cess used for exporting services.

The judgment concluded by allowing the appeals filed by the Appellants, providing them with consequential relief as per the law. The decision was pronounced in open court on 26.02.2020.