2020 (4) TMI 835 - AT - Service Tax

Tribunal Grants Refund of Swachh Bharat Cess on Export Services, Confirms SBC as Cenvat Credit Eligible for Refund.

The Tribunal set aside the impugned order, granting the Appellants entitlement to a refund of Swachh Bharat Cess (SBC) paid on input services used for ... Refund of Swachh Bharat Cess on input services used for export of services - Cenvat credit of Swachh Bharat Cess - Section 119 of the Finance Act, 2015Refund of Swachh Bharat Cess on input services used for export of services - Cenvat credit of Swachh Bharat Cess - Section 119 of the Finance Act, 2015 - Appellants are entitled to refund of Swachh Bharat Cess paid on input services used for providing export of services. - HELD THAT: - The Adjudicating Authority and the Commissioner (Appeals) rejected refund claims on the ground that no provision or Notification permits refund of Swachh Bharat Cess (SBC) paid on input services used for export of services. This Tribunal found the issue no longer res integra in view of earlier decisions in the appellant's own cases, namely State Street Syntel Services Pvt. Ltd. vs. Commr. of Central GST & Central Excise, Mumbai and M/s. State Street Syntel Services Pvt. Ltd. vs. Commr. of CGST, Navi Mumbai , in which the Tribunal, after discussing Section 119 of the Finance Act, 2015 and precedents, held that SBC paid on input services is available as Cenvat credit of Swachh Bharat Cess, can be utilized for discharge of service tax liability and is refundable in the context of export of services. Applying those decisions to the facts before it and considering the totality of circumstances, the Tribunal set aside the impugned order and held that the appellants are entitled to refund of SBC used for export of services. [Paras 4, 5]Impugned order set aside; appeals allowed and appellants held entitled to refund of Swachh Bharat Cess used for export of services with consequential relief as per law.Final Conclusion: Appeals allowed; refund of Swachh Bharat Cess paid on input services used for export of services granted to the appellants, following the Tribunal's earlier decisions, with consequential relief as per law. 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.