Swachh Bharat Cess refund on export input services is available where the Cenvat scheme treats it like service tax.

Swachh Bharat Cess paid on input services used for export services was treated as part of the service tax framework, because section 119 of the Finance Act, 2015 applies Chapter V of the Finance Act, 1994 and the related refund and exemption rules to the cess. On that basis, Cenvat credit and refund could not be denied merely because the claim was made separately or because no separate notification expressly granted the refund. The defect was procedural only, so the substantive entitlement to refund remained intact and consequential relief followed.

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Issues: Whether refund of Swachh Bharat Cess paid on input services used for providing export service was admissible.

Analysis: Swachh Bharat Cess is levied and collected as an additional levy in the nature of service tax. Section 119 of the Finance Act, 2015 makes the provisions of Chapter V of the Finance Act, 1994 and the rules made thereunder, including those relating to refunds and exemptions, applicable to Swachh Bharat Cess. As the Cenvat Credit Rules, 2004 form part of that framework, credit of the cess paid on input services could not be denied merely because the claim was made separately or because the refund was not expressly granted by a separate notification. The defect, if any, was only procedural and could not defeat the substantive entitlement.

Conclusion: Refund of Swachh Bharat Cess paid on input services used for export services was admissible and the appeal succeeded.

Final Conclusion: The impugned order was set aside and the assessee was held entitled to the claimed refund with consequential relief.

Ratio Decidendi: Where a cess is statutorily subjected to the same refund and credit mechanism as service tax, credit of such cess on eligible input services cannot be denied on a purely procedural ground, and refund follows from the applicable cenvat scheme.

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