2011 (3) TMI 1082 - AT - Central Excise

Demand of Education Cess - 100% EOU - Clearances to DTA - Held that - The Tribunals decision in the case of M/s Sarla Performance Fibres Ltd 2010 (2) TMI 335 - CESTAT AHMEDABAD which lays down that 100% EOU is not required to pay education cess again at the time of clearance of imported goods to DTA - Decided in favour of assessee.

Summary

Issues:
1. Early hearing application for disposal of Revenue's appeal against dropping the demand of Education Cess by the Commissioner.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad, involved the consideration of an early hearing application filed by the respondent regarding the disposal of Revenue's appeal against the dropping of the demand of Education Cess by the Commissioner. The advocate for the respondent argued that the issue was settled by the Tribunal's decision in the case of M/s Sarla Performance Fibres Ltd., which was further followed in the same respondent's case. The Commissioner had dropped the demand of Education Cess in relation to clearances made by the respondent, a 100% EOU to DTA, based on the Tribunal's decision in the aforementioned case. The Tribunal had also followed this decision in the case of M/s Meghmani Organics Ltd. The Revenue did not dispute the applicability of the said decision but contended that the Tribunal had misinterpreted a Board circular. However, the JDR for the Revenue acknowledged that there was no stay on the operation of the Tribunal's order. The Tribunal emphasized that the mere filing of an appeal does not invalidate the earlier precedent decision. As the issue had been decided in previous cases and followed consistently, the appeal of the Revenue was rejected.

The judgment highlighted the importance of following precedent decisions and established principles in tax matters. It emphasized that the mere filing of an appeal does not prevent the application of earlier decisions. The Tribunal's decision was based on the interpretation of relevant laws and circulars, ensuring consistency in the application of tax laws. The rejection of the Revenue's appeal underscored the significance of adherence to established legal principles and decisions in tax disputes. The early hearing application was also disposed of in light of the main appeal decision, providing a comprehensive resolution to the matter before the Tribunal.