Amadeus Software Labs India Pvt Ltd Vs Commissioner of Central Tax (CESTAT Bangalore)
Introduction: In an intriguing case that unfolded between Amadeus Software Labs India Pvt Ltd and the Commissioner of Central Tax, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Bangalore was presented with the question of jurisdiction for a second appeal. This stemmed from the ambiguity over the correct appellate authority for matters relating to the rebate of service tax on input services.
Analysis: Amadeus Software Labs, engaged in exporting software development services, was claiming refund of unutilized cenvat credit of service tax paid on input services. The applications filed by the company for the rebate of Swachh Bharath Cess were rejected, leading to appeals before the Commissioner (Appeals) and subsequently, before the CESTAT.
However, the company’s interpretation of Section 86(1) of the Finance Act, 1994 suggested that the appropriate appellate authority should be the Central Government (Revisional Authority). This led to the filing of a revision application with the Revisional Authority, resulting in an apparent ambiguity regarding the correct jurisdiction for the second appeal. Consequently, the company requested the withdrawal of the appeals filed before the CESTAT as a precautionary measure, a request which was granted.
FULL TEXT OF THE CESTAT BANGALORE ORDER
These appeals are filed against the Order-in-Appeal Nos.107-112/2021 dated 11.03.2021 passed by Commissioner Central Tax (Appeals-I) Bangalore.
2. Briefly stated the facts of the case are that the appellant, Amadeus Software Lab, is engaged in the export of software Development services to its parent company located in France, which is classifiable under Information Technology Software Services (ITS Services). The appellant has been regularly claiming refund of unutilized cenvat credit of service tax paid on input services received and entirely used in the export of ITS Services under Rule 5 of the Cenvat Credit Rules, 2004 read with Notification No. 27/2012-CE (NT) dated 18.06.2012.
3. The company has also filed separate applications in Form ASTR-2 for claiming rebate of tax paid as Swachh Bharath Cess (SBC) on input services received and used in providing services exported outside India under Notification No. 39/2012-ST dated 20.06.2012 as amended by Notification No. 03/2016-ST dated 03.02.2016 for the relevant period. The details are as under:
