2018 (3) TMI 2028 - AT - Central Excise

Refund of Education/Higher Education Cess paid by the respondents-assessee in respect of final products manufactured and cleared by them availing area based exemption under Notification No. 56/2002-CE dated 14.11.2002 - HELD THAT - Both sides agreed that the issue pertaining to the Education/Higher Education Cess has already been decided by the Hon ble Supreme Court in the case of M/S. SRD NUTRIENTS PRIVATE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE GUWAHATI 2017 (11) TMI 655 - SUPREME COURT wherein it was observed that the assessees are entitled to the refund of Education/Higher Education Cess which was paid along with excise duty once the excise duty itself is exempted. It is made clear that except for the education cess/higher education cess no other issue/ground is being pressed in these appeals. By following the ratio laid down by the Hon ble Supreme Court there are no reason to interfere with impugned orders where the refund claims of the assessees pertaining to Education/Higher Education Cess were allowed. All the appeals filed by the Revenue are dismissed.

Summary

Issues:
Entitlement of refund of Education/Higher Education Cess paid by the respondents-assessee in relation to final products manufactured and cleared under area-based exemption.

Analysis:
The appeals were filed by the Revenue regarding the refund of Education/Higher Education Cess paid by the respondents-assessee for final products manufactured and cleared under an area-based exemption. The impugned orders allowed the claims of the assessees, but the Revenue contended that the assessees were not eligible for the refund as the exemption applied only to excise duty.

Upon hearing both parties and examining the available material, it was noted that the issue of Education/Higher Education Cess had already been settled by the Hon'ble Supreme Court in the case of M/s. SRD Nutrients Pvt. Limited vs. CCE, Guwahati. The Supreme Court held that assessees are entitled to the refund of Education/Higher Education Cess if the excise duty itself is exempted. It was clarified that apart from the education cess/higher education cess, no other issue was being pressed in these appeals.

Based on the Supreme Court's ruling, the Tribunal found no justification to interfere with the impugned orders that allowed the refund claims of the assessees concerning Education/Higher Education Cess. Consequently, all appeals filed by the Revenue were dismissed, and the cross-appeal filed by the assessee-respondent was also disposed of. The order was dictated and pronounced in court.