2018 (10) TMI 1627 - AT - Central Excise

Refund of Education Cess - N/N. 39/2001-CE - Held that - Hon ble Supreme Court in SRD Nutrients (P) Ltd. 2017 (11) TMI 655 - SUPREME COURT OF INDIA considering the very same issue particularly on the area based exemption notification held that Education Cess being a duty of excise is exempted under area based exemption notification - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Whether the appellant is entitled to a refund of Education Cess under Exemption Notification 39/2001-CE.

Analysis:
The issue in this case revolves around the entitlement of the appellant to a refund of Education Cess under Exemption Notification 39/2001-CE. The counsels for the appellant argued that the issue is settled by a Supreme Court judgment in the case of SRD Nutrients (P) Ltd. vs CCE Guwahati, where it was held that a refund is available on Education Cess paid under the said notification. On the other hand, the Revenue representative relied on a judgment in favor of the Revenue in the case of Bajaj Auto Ltd. vs UOI. However, the Tribunal noted that the Supreme Court in the SRD Nutrients case had held that Education Cess is exempted under area-based exemption notifications. Therefore, the judgment in the Bajaj Auto case was distinguished, and the impugned orders were deemed unsustainable. Consequently, the appeals were allowed, and the orders were set aside.

In a detailed analysis, the Tribunal considered the submissions from both sides and examined the relevant legal precedents. The Tribunal highlighted that the Supreme Court's decision in the SRD Nutrients case specifically addressed the issue of Education Cess under area-based exemption notifications. The Tribunal emphasized that Education Cess, being a duty of excise, falls under the purview of exemption under such notifications. By distinguishing the judgment in the Bajaj Auto case, which was in favor of the Revenue, the Tribunal followed the precedent set by the Supreme Court in the SRD Nutrients case. As a result, the Tribunal concluded that the impugned orders were not sustainable and proceeded to allow the appeals, ultimately setting aside the orders.

Overall, the judgment delves into the interpretation of relevant legal provisions and the application of precedents set by higher courts. The Tribunal's decision was based on a thorough analysis of the arguments presented by both parties and a careful consideration of the legal principles involved. By aligning with the Supreme Court's ruling in the SRD Nutrients case, the Tribunal provided clarity on the issue of Education Cess refund under the specific exemption notification, ultimately leading to the allowance of the appeals and the setting aside of the impugned orders.