2018 (3) TMI 1600 - AT - Central Excise

Refund of Education/Higher Education Cess - Area Based Exemption availed - Revenue held a view that the assessee-Appellants are not eligible for such refund as exemption is available only to excise duty - Held 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 Pvt. Limited vs CCE, Guwahati 2017 (11) TMI 655 - SUPREME COURT OF INDIA , wherein it was observed that the assessee-Appellants are entitled to the refund of Education/Higher Education Cess which was paid along with excise duty, once the excise duty itself is exempted - refund allowed - appeal dismissed - decided against Revenue.

Summary

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

Analysis:
The judgment by the Appellate Tribunal CESTAT Chandigarh dealt with appeals filed by the Revenue regarding the refund entitlement of Education/Higher Education Cess paid by the assessee under area-based exemption. The Revenue contended that the assessee was not eligible for such refund as the exemption applied only to excise duty. The Tribunal, after hearing both sides and examining the records, referred to a Supreme Court decision in the case of M/s. SRD Nutrients Pvt. Limited vs CCE, Guwahati, where it was established that if excise duty is exempted, the assessee is entitled to the refund of Education/Higher Education Cess paid along with it. Based on this legal precedent, the Tribunal found no grounds to interfere with the impugned orders that allowed the refund claim of the assessee pertaining to Education/Higher Education Cess.

The Tribunal, in line with the Supreme Court ruling, dismissed all the appeals filed by the Revenue. Additionally, the cross-appeal by the assessee-respondent in one of the cases was also disposed of accordingly. The decision was made following the established legal principle and the specific circumstances of the case, affirming the entitlement of the assessee to the refund of Education/Higher Education Cess in conjunction with the exemption of excise duty.