TMI Blog2018 (5) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... nts Pvt. Ltd. vs CCE, Guwahati, [2017 (11) TMI 655 - SUPREME COURT OF INDIA], has held that the education cess/higher education cess arises on account of payment of duty, therefore, the refund claim is admissible of education cess/ higher education cess in terms of Notification No. 56/2002-CE dated 14.11.2002 - decided in favor of appellant. Whether the interest for the intervening period can be demanded/adjusted or recovered from the appellant without issuance of the SCN? - Held that: - for demand of interest a SCN is required to be issued and the same has not been issued to the appellant - the interest cannot be recovered from the appellant without issuance of the SCN - decided in favor of appellant. Appeal allowed - decided in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout issuance of the show cause notice. The matters were adjudicated as above. Against the said orders, the appellant is before us. 3. Heard the parties and considered the submission. 4. On hearing the parties following issues emerges: (I) Whether the appellant can utilise basic excise duty for payment of education cess/higher education cess or not? (II) Whether the appellant is entitled to claim refund of education cess/higher education cess paid in cash in terms of Notification No. 56/2002-CE dated 14.11.2002 or not? (III) Whether the interest for the intervening period can be demanded/adjusted or recovered from the appellant without issuance of the show cause notice. Issue No. I The issue of payment of education ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or demand of interest, therefore, question of payment of interest does not arise. In that circumstances, we hold that the interest cannot be recovered from the appellant without issuance of the show cause notice. Further, we find that the issue is of short payment of duty on the premises that as the goods had been cleared to their sister unit and they are required to pay duty as per CAS-4, we take note of the fact that whatever the duty could have been paid by the appellant is entitled to refund of the same. In that circumstances, it is a revenue neutral situation, therefore, on that account also payment is of interest is not required to be adjusted by the authorities below, therefore, the Issue No. III is also answered in favour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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