2018 (8) TMI 2128 - AT - Central Excise

Denial of education cess and higher education cess - duty paid by availing the benefit of education cess and higher education cess also dis-allowed - HELD THAT - Considering the fact that the issue has been settled by the Hon ble Apex Court in the case of M/S. SRD NUTRIENTS PRIVATE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE GUWAHATI 2017 (11) TMI 655 - SUPREME COURT wherein it has been held that education cess/ higher education cess is consequent to duty payable by the assessee-appellants. In that circumstances the assessee-Appeal appellants are entitled to claim refund of education cess and higher education cess. Consequently the said dis-allowance of rejection of refund claim as well as dis-allowance of the self credit of the same cannot be denied to the appellants. The impugned order qua the issue of education cess/higher education cess set aside - appeal disposed off.

Summary

Issues:
Appeal against denial of education cess and higher education cess refund.

Analysis:
The appellants filed appeals against orders denying education cess and higher education cess. The duty paid by availing the benefit of these cesses was also disallowed. After hearing both parties and considering their submissions, the Tribunal referred to a judgment by the Hon'ble Apex Court in the case of M/s. SRD Nutrients Pvt. Limited vs. CCE, Guwahati. The Apex Court held that education cess and higher education cess are consequent to duty payable by the assessee-appellants. Therefore, the Tribunal concluded that the appellants are entitled to claim a refund of education cess and higher education cess. Consequently, the rejection of the refund claim and disallowance of self-credit of the same cannot be upheld. The Tribunal set aside the impugned order regarding the issue of education cess and higher education cess and disposed of the appeals accordingly.

This judgment clarifies that when duty is paid by availing the benefit of education cess and higher education cess, the assessee-appellants have the right to claim a refund of these cesses. The decision is based on a precedent set by the Hon'ble Apex Court, providing a legal basis for the appellants' entitlement to the refund. The Tribunal's ruling emphasizes the importance of adhering to legal principles and precedents established by higher courts in resolving tax-related issues. The judgment serves as a guide for future cases involving similar disputes over the denial of education cess and higher education cess refunds, ensuring consistency and fairness in tax matters.