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 exporting services. The Tribunal relied on Section 119 of the Finance Act, 2015, and prior favorable decisions, concluding that SBC should be available as Cenvat Credit and refundable. The appeals were allowed, providing consequential relief to the Appellants.

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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.

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