2018 (3) TMI 1737 - AT - Central Excise

Refund/self-credit of duty paid in cash - time limitation - area based exemption availed - case of Revenue is that the appellant have not taken the refund/self-credit or duty paid in cash in the seven days of the next month and they have taken the same later on therefore they are not entitled to self-credit on the same. Whether as per Notification No. 56/2002-C.E. dated 14-11-2002 is there any bar or is there any condition on the appellant to take refund/ self credit of duty paid in cash of seven days of next month or not? - Held that - The appellant themselves of their own option can take self-credit or duty paid in cash. As per the said condition there is not bar on the appellant to take the refund/ self-credit by seven days of next month therefore understanding of the Revenue that they have to take self-credit/refund by seven days of next month is erroneous - the appellant have correctly availed Cenvat credit later on - decided in favor of appellant. Whether the appellant is entitled to claim refund of education cess/higher education cess in terms of Notification No. 56/2002-C.E. dated 14-11-2002 or not? - Held that - The issue of refund of education cess/higher education cess has been dealt with by the Hon ble Apex Court in the case of SRD Nutrients Pvt. Ltd. v. CCE Guwahati 2017 (11) TMI 655 - SUPREME COURT OF INDIA wherein the Hon ble Apex Court held that the education cess/higher education cess arises on account of payment of duty therefore the refund claim is admissible of education cess/higher education cess in terms of Notification No. 56/2002-C.E. dated 14-11-2002 - decided in favor of appellant. Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Interpretation of Notification No. 56/2002-C.E., dated 14-11-2002 regarding the timeframe for availing self-credit/refund of duty paid in cash.
2. Entitlement to claim refund of education cess/higher education cess under Notification No. 56/2002-C.E., dated 14-11-2002.

Issue No. I:
The appellant contested an order alleging delayed self-credit/refund of duty paid in cash under Notification No. 56/2002-C.E., dated 14-11-2002. The Tribunal analyzed the provision allowing manufacturers to take self-credit at their discretion without a specified timeframe. It was concluded that there is no restriction on availing self-credit/refund within seven days of the next month. The Revenue's interpretation was deemed erroneous, and the Tribunal ruled in favor of the appellant, affirming their right to claim Cenvat credit later on.

Issue No. II:
Regarding the refund of education cess/higher education cess, reference was made to a Supreme Court judgment in SRD Nutrients Pvt. Ltd. v. CCE, Guwahati, 2017. The Court had held that education cess/higher education cess is linked to duty payment, making refund claims permissible under Notification No. 56/2002-C.E., dated 14-11-2002. Consequently, the Tribunal sided with the appellant on this issue as well. As a result of the analysis, both issues were resolved in favor of the appellant, leading to the setting aside of the impugned order and granting of the appeal with consequential relief.