2017 (3) TMI 1621 - AT - Central Excise

Rectification of mistake - whether education cess and secondary and higher education cess has to be paid for the third time when inputs are supplied by 100% EOU to DTA? - it was claimed that said issue stands covered by the judgment in the case of Kumar Arch Tech Pvt. Ltd. v. CCE, Jaipur-H 2013 (4) TMI 482 - CESTAT NEW DELHI . instead of noting the above judgment of the Larger Bench, the Tribunal has relied upon the judgment in the case of CCE and-S.T., Ludhiana v. Khanna Paper Mills Ltd. 2015 (9) TMI 1380 - CESTAT NEW DELHI . Held that - it is indeed correct that the issue stands covered by the Larger Bench judgment in the case of Kumar Arch. Tech Pvt. Ltd. Instead the Tribunal has erroneously relied upon the judgment in the case of Khanna Paper Mills Ltd., which deals with another issue. In view thereof, it is fit to allow the application seeking rectification of mistake in the Final Order - ROM application allowed.

Summary

Issues: Rectification of mistake in the Final Order regarding payment of education cess and secondary higher education cess for the third time when inputs are supplied by 100% EOU to DTA.

Analysis:

1. Rectification of Mistake Application: The department filed an application seeking rectification of a mistake in the Final Order passed by the Tribunal regarding the payment of education cess and secondary higher education cess for the third time in the scenario where inputs are supplied by 100% EOU to DTA.

2. Contentions of the Department: The department argued that the issue at hand was already settled by a Larger Bench judgment in the case of Kumar Arch Tech Pvt. Ltd., which was not considered in the Tribunal's decision. Instead, the Tribunal relied on a judgment related to a different issue, leading to an error on the face of the record that needed rectification.

3. Response of the Respondent/Assessee: The respondent's counsel agreed with the department's request for rectification of the mistake in the Final Order, acknowledging the relevance of the Larger Bench judgment in the case of Kumar Arch Tech Pvt. Ltd.

4. Judicial Decision: After examining the Final Order, the Tribunal acknowledged the error in relying on the incorrect judgment and failing to consider the precedent set by the Larger Bench in the case of Kumar Arch Tech Pvt. Ltd. Consequently, the Tribunal granted the application for rectification of the mistake, setting aside the impugned order and allowing the appeal with any consequential reliefs, if applicable.

5. Outcome: The Tribunal allowed the rectification of mistake application, modifying the Final Order to align with the decision rendered by the Larger Bench in the case of Kumar Arch Tech Pvt. Ltd., thereby rectifying the error in the initial judgment.

This detailed analysis of the judgment highlights the procedural aspect of rectifying mistakes in legal orders and the importance of applying relevant precedents to ensure accurate decision-making in tax matters related to education cess and secondary higher education cess payments in specific business transactions.