2018 (5) TMI 1351 - AT - Central Excise

Refund/ self-credit of education cess/ higher education cess paid - 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 - Held that - 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 , has 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 - the appellants are entitled to claim refund/ self-credit of education cess/ higher education paid by them through PLA - in favor of assessee. In terms of N/N. 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 - in favor of assessee. Appeal allowed - decided in favor of appellant.

Summary

Issues involved:
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 ruling by the Hon'ble Apex Court in the case of M/s. SRD Nutrients Pvt. Limited vs. CCE, Guwahati, where it was established that education cess/higher education cess is a continuation of duty paid by the assessee. Therefore, 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. Consequently, the Tribunal held that the appellants were entitled to claim refund/self-credit for the education cess/higher education cess paid through PLA.

Issue 2: Entitlement to claim refund/self-credit as per Notification No. 19/2008-CE and 34/2008-CE:
The second issue revolved around whether the appellants could claim refund/self-credit as per the restrictions imposed by Notification No. 19/2008-CE and 34/2008-CE. The Tribunal considered a decision by the Hon'ble J & K High Court in the case of Reckit Benckiser vs. UOI, where the High Court invalidated the notifications in question. Relying on this judgment and a previous decision by the Tribunal in the case of M/s. Biostadt India Limited & others, the Tribunal concluded that the appellants were entitled to claim refund/self-credit of duty paid through PLA under Notification No. 56/2002-CE, without being restricted by the provisions of Notification No. 19/2008-CE and 34/2008-CE.

In light of the above analysis, the Tribunal allowed the appeals, emphasizing that the refund/self-credit could not be constrained by the provisions of Notification No. 19/2008-CE and 34/2008-CE, and confirming the appellants' entitlement to claim refund/self-credit of duty paid through PLA under Notification No. 56/2002-CE.