2018 (3) TMI 1670 - AT - Central Excise

Refund of self credit/ refund of education/ higher education cess paid - N/N. 56/2002-CE dated 14.11.2002 - Held that - The issue whether the appellants are entitled to refund/ self-credit of education cess/ higher education cess paid by them has been settled by the Hon ble Apex Court in the case of M/s. SRD Nutrients Pvt. Limited vs. CCE, Guwahati 2017 (11) TMI 655 - SUPREME COURT OF INDIA , wherein it has been held that education cess/ higher education cess is continuation of duty paid by the assessee - appellants are entitled to claim refund/ self-credit of education cess/ higher education paid by them through PLA. In terms of Notification No. 19/2008-CE dated 27.03.2008 and 34/2008-CE dated 10.06.2008, whether the appellants are entitled to claim refund/self-credit as restricted by these notifications or not? - Held that - In terms of Notification No. 56/2002- CE dated 14.11.2002, the appellants are entitled to claim refund/ self-credit of duty paid through PLA, relying on the decision of this Tribunal in the case of M/s. Biostadt India Limited & others 2018 (4) TMI 1154 - CESTAT CHANDIGARH - refund allowed. The refund/ self credit cannot be restricted in terms of N/N. 19/2008-CE dated 27.03.2008 and 34/2008-CE dated 10.06.2008 and the appellants are entitled to claim refund/self credit of duty paid through PLA, in terms of N/N. 56/2002-CE dated 14.11.2002 - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Refund claim rejection under Notification No. 56/2002-CE.
2. Entitlement to self-credit/refund of education/higher education cess.
3. Restrictions for refund/self-credit under Notification Nos. 19/2008-CE and 34/2008-CE.

Analysis:
1. The appellants challenged the rejection of their refund claim under Notification No. 56/2002-CE. The issue was twofold: (a) denial of self-credit/refund for education/higher education cess paid, and (b) restrictions on refund/self-credit under Notification Nos. 19/2008-CE and 34/2008-CE. The Hon'ble Apex Court's ruling in M/s. SRD Nutrients Pvt. Limited vs. CCE, Guwahati clarified that education cess/higher education cess is part of duty paid by the assessee. Consequently, if entitled to duty refund via PLA, the appellants can claim refund/self-credit for education cess/higher education cess paid through PLA.

2. Regarding the restrictions under Notification Nos. 19/2008-CE and 34/2008-CE, the Tribunal referred to the judgment of the Hon'ble J & K High Court in Reckit Benckiser vs. UOI. The High Court had invalidated the said notifications. Citing the decision in M/s. Biostadt India Limited & others, the Tribunal held that appellants can claim refund/self-credit of duty paid through PLA under Notification No. 56/2002-CE dated 14.11.2002. Consequently, the Tribunal ruled that the restrictions imposed by Notification Nos. 19/2008-CE and 34/2008-CE do not apply, and the appellants are entitled to claim refund/self-credit under Notification No. 56/2002-CE.

3. In conclusion, the Tribunal allowed the appeals, affirming the appellants' entitlement to claim refund/self-credit for education cess/higher education cess paid through PLA under Notification No. 56/2002-CE. The judgments of the Hon'ble Apex Court and the J & K High Court played pivotal roles in determining the appellants' rights in this matter.