Certificate issued by STPI Authority is not required for claiming Refund under the Business Auxiliary Services: CESTAT Bangalore [Read Order]

The Bangalore bench of the CESTAT, recently held that for claiming refund of Service Tax under Business Auxiliary Service, the certificate issued by STPI Authority is not required.

The appellants, in the instant case, appellants are engaged in providing Information Technology Software Service and Business Auxiliary Services.

Before the Tribunal, they challenged the order of the first appellate authority who granted refund to the appellant subject to submitting the SOFTEX copies duly certified by Software Technology Park of India (STPI) authorities to the Assistant Commissioner for verification.

The appellants contended that as per the direction of the Commissioner (A), appellant moved an application to the Director of STPI seeking the SOFTEX copies for Business Auxiliary Service. But the STPI authorities vide their communication dated 1.11.2017 informed the appellant that SOFTEX need to be filed for software ITES exports done through Data Communication Link and need not be filed for Business Auxiliary Service.

Allowing the appeal, the Tribunal held that the submission of certificate issued by STPI authority is not required for claiming the refund under the Business Auxiliary Services and the STPI have also clarified the same vide its communication dated 1.11.2017. “Therefore, in view of this, I find that the Commissioner (A)s order is not sustainable in law and therefore, I set aside the impugned order to this extent vide which he has directed the party to submit the SOFTEX duly certified by STPI authorities. With these modifications, both the appeals are allowed to the extent prayed before me and the lower authorities will quantify the refund amount after verifying the documents and thereafter, sanction the eligible amount of refund.”