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2023 (7) TMI 542 - SCH - Central ExciseExemption from payment of education cess and secondary education cess, when exemption from payment of excise duty under a notification was granted - HELD THAT:- In SRD Nutrients (P) Limited [2017 (11) TMI 655 - SUPREME COURT] it was held that when payment of Excise Duty is exempt under the Central Excise Act, then the 2% Education Cess and Secondary and Higher Education Cess payable on the aggregate duties of excise will also be exempted. However, later in the case of M/s Unicorn Industries Vs. Union of India reported in [2019 (12) TMI 286 - SUPREME COURT], the aforesaid judgment in SRD Nutrients (P) Limited vs. CCE was overruled and it was held that although the exemption from payment of excise duty under a notification is granted, there is no exemption from payment of education cess. Therefore, the assessee who had paid the excise duty and education cess was not entitled to a refund of the education cess which had been paid. Also where refund had been made pursuant to the judgment in M/s SRD Nutrients (P) Limited, was no longer valid. The explanation to Order XLVII Rule 1 which is a wholesome provision has been inserted to the Code of Civil Procedure. It states that once there is a subsequent judgment overruling an earlier judgment on a point of law, the earlier judgment cannot be reopened or reviewed on the basis of a subsequent judgment. In substance, the High Court in SRD Nutrients (P) Limited has stated that the decision in SRD Nutrients (P) Limited had attained finality and was binding on the parties thereto. Therefore, the subsequent decision of this Court overruling SRD Nutrients (P) Limited in the case of M/s Unicorn Industries cannot have a bearing on past decisions which had attained finality although they had followed SRD Nutrients (P) Limited, which was subsequently overruled in M/s Unicorn Industries. Otherwise a pandora’s box would be opened and there would be no end to litigation, which is against public policy. The Special Leave Petitions are dismissed.
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