Refund of SBC and KKC paid on input service used for export of exempted goods

[BipadBhanjan dixit]

We are a mining company export iron ore fines to chaina. We paid Service tax, SBC and KKC on various input services at port and other places used for export of iron ore fines. The company claimed refund of Service tax including SBC & KKC, under the Notification 41/2012-ST,dated 29.06.2012 and the Dept. allowed Sr tax only denying SBC and KKC which is appealed.

Query: Now , can the claimants succeed the refund of such SBC,KKC paid on services used for export of goods and if it is , under which provisions:

Is there any court case referred in support of this claim?

Please help.

Rergads .

[DR.MARIAPPAN GOVINDARAJAN]

You can claim the refund if you succeeded in appeal.

[Rajagopalan Ranganathan]

Sir,

Under erstwhile CENVAT Credit rules, 2004 credit of KKC is allowable [vide rule 3 (1a) of CENVAT Credit Rules, 2004] but not credit of SBC. Hence if you win in the appeal you can claim refund of KKC only.

[KASTURI SETHI]

Dear Querist,

The following case law may be helpful tp you :

2019 (27) G.S.T.L. 519 (Tri. - Mumbai) = 2019 (5) TMI 1568 - CESTAT MUMBAI STATE STREET SYNTEL SERVICES PVT. LTD. Versus COMMR. OF CGST & C. EX., MUMBAI

[PAWAN KUMAR]

Dear Sir,

Refund is available as per Notificaiton No.03/2016-Service tax dated 03.02.2016. The notificaiton amend the earlier notification 39/2012-S.tax and include the SB CESS into rebate list.

AI Summary

Refundability of Krishi Kalyan Cess and Swachh Bharat Cess on input services used for export clarified. Claim concerns refund of cess components paid on input services for export of exempted goods. Under the erstwhile Cenvat regime, Krishi Kalyan Cess was treated as admissible Cenvat credit and thus refundable upon successful appeal, while Swachh Bharat Cess was not admissible as credit initially. Subsequent notification amendment is cited as adding Swachh Bharat Cess to the rebate list, and practitioners reference tribunal authority supporting refund under the notification-based rebate mechanism.