2018 (3) TMI 1710 - AT - Central Excise

Refund of EC and SHEC - N/N. 56/2002-CE dated 14.11.2002 - rejection on the ground that the appellants are not entitled to self credit/ refund of education/ higher education cess paid by them in terms of N/N. 56/2002-CE dated 14.11.2002 - Rejection also on the ground of restrictions imposed under N/N. 19/2008-CE dated 27.03.2008 and 34/2008-CE dated 10.06.2008. Held that - 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. If the assessee is entitled to refund of duty paid through PLA, then for the education cess/ higher education cess also, the assessee is entitled to claim refund/ self-credit - refund allowed. 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 - The notifications in question have been examined by the Hon ble J K High Court in the case of Reckit Benckiser vs. UOI 2010 (12) TMI 237 - JAMMU AND KASHMIR HIGH COURT , wherein the Hon ble High Court quashed the notifications in question. Therefore, 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. Entitlement to refund/self-credit of education cess/higher education cess paid under Notification No. 56/2002-CE.
2. Entitlement to claim refund/self-credit as per Notification No. 19/2008-CE and 34/2008-CE.

Analysis:

Issue 1: Entitlement to refund/self-credit of education cess/higher education cess paid under Notification No. 56/2002-CE:
The appellants contested the rejection of their refund claim under Notification No. 56/2002-CE on the grounds that they were not entitled to self-credit/refund of education/higher education cess paid. The Tribunal referred to a previous decision by the Hon'ble Apex Court in the case of M/s. SRD Nutrients Pvt. Limited vs. CCE, Guwahati, which established that education cess/higher education cess is considered a continuation of duty paid by the assessee. Consequently, if an assessee is eligible for a refund of duty paid through PLA, they are also entitled to claim a refund/self-credit for education cess/higher education cess paid through PLA. Therefore, the Tribunal held that the appellants are indeed entitled to claim refund/self-credit for the education cess/higher education cess paid by them.

Issue 2: Entitlement to claim refund/self-credit as per Notification No. 19/2008-CE and 34/2008-CE:
Regarding the question of whether the appellants could claim refund/self-credit under Notification No. 19/2008-CE and 34/2008-CE, the Tribunal examined these notifications in light of a judgment by the Hon'ble J & K High Court in the case of Reckit Benckiser vs. UOI. The High Court had invalidated the notifications in question. Consequently, the Tribunal ruled that the appellants are entitled to claim refund/self-credit of duty paid through PLA under Notification No. 56/2002-CE, relying on a previous decision of the Tribunal in the case of M/s. Biostadt India Limited & others. The Tribunal concluded that the refund/self-credit could not be restricted by Notification No. 19/2008-CE and 34/2008-CE, and the appellants have the right to claim refund/self-credit of duty paid through PLA under Notification No. 56/2002-CE. The judgment clarified that apart from these two issues, no other matters were raised in the appeals.

In conclusion, the appeals were allowed based on the Tribunal's findings on the entitlement of the appellants to claim refund/self-credit for education cess/higher education cess paid under Notification No. 56/2002-CE and the invalidation of restrictions imposed by Notification No. 19/2008-CE and 34/2008-CE.