Refund is available on Swachh Bharat Cess used for Export of Services: CESTAT [Read Order]

The Customs Excise and Service Tax Appellate Tribunal (CESTAT) held that the Swachh Bharat Cess paid on input services has to be available as Cenvat Credit and the same can be discharged by utilizing Cenvat Credit and the appellant therein is entitled to a refund of it.

The Appeal is arising out of the order passed by the Commissioner(Appeals), of CGST & CX, Raigarh in Order-in-Appeal. Since a common impugned order has been passed by the learned commissioner in two Appeals, therefore, I am also deciding both the appeals by this common order.

Refund claims of the said Cess were rejected by the Adjudicating Authority on the ground that there is no provision for refund of Swachh Bharat Cess paid on the input services used for providing export service.

The learned Commissioner vide impugned order rejected the Appeals filed by the Appellant holding that refund of Swatch Bharat Cess paid on the input services used for providing export service is not admissible to the Appellant in the absence of any Notification for granting refund of SBC used for Export of Service.

The Judicial Member, Ajay Sharma delivered the order based on an appeal filed by M/s State Street Syntel Services P Ltd.

Section 119 of the Finance Act, 2015 elaborates as the Swachh Bharat Cess leviable under sub-section (2) shall be in addition to any cess or service tax leviable on such taxable services under Chapter V of the Finance Act, 1994, or under any other law for the time being in force

In the light of the decision in 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 this Tribunal came into conclusion that the Swachh Bharat Cess paid on input services has to be available as Cenvat Credit and the same can be discharged by utilizing Cenvat Credit and the appellant therein is entitled to a refund of it.

While allowing the appeal Judicial Member said that the Appellant is entitled to refund of Swatch Bharat Cess used for Export of Services.