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2024 (2) TMI 561 - AT - Central ExciseRefund of Education Cess and S H Education Cess paid through PLA - appeal rejected on account of non deposit of mandatory pre-deposit - HELD THAT - The Parallel proceedings for recovery of the self-credit/refund erroneously taken by the appellant in respect of Education Cess and S H Education Cess during the overlapping period were adjudicated by the original authority as well as by the appellate authorities of the department and appellant was asked to deposit an amount of Rs. 22, 69, 936/-. Thereafter the CESTAT vide its Final Order 2018 (10) TMI 2020 - CESTAT CHANDIGARH held that the appellant is entitled to take the refund of Education Cess and S H Education Cess in view of the judgment of the Hon ble Supreme Court in the case of SRD Nutrients Pvt. Ltd. 2017 (11) TMI 655 - SUPREME COURT - It is also found that pursuant to CESTAT s Order dated 25.10.2010 the appellant duly applied for refund of the amount so deposited and was granted by the original authority vide its order dated 11.03.2019 wherein the Original authority has also observed that the appellant is entitled for refund of Education Cess and S H Education Cess and by following the decisions of the CESTAT the Original authority has rightly granted the refund. The High Court has stated that the decision in SRD Nutrients (P) Limited 2017 (11) TMI 655 - SUPREME COURT had attained finality and was binding on the parties thereto. Therefore the subsequent decision of this Court overruling SRD Nutrients (P) Limited in the case of M/s Unicorn Industries 2019 (12) TMI 286 - SUPREME COURT cannot have a bearing on past decisions which had attained finality although they had followed SRD Nutrients (P) Limited which was subsequently overruled in M/s Unicorn Industries. Otherwise a pandora s box would be opened and there would be no end to litigation which is against public policy. In view of the above the appellant is entitled to the refund of Education Cess and S H Education Cess and the said order has been complied with by the Revenue.
Issues:
The appeal against the order dated 21.10.2021 passed by the Commissioner (Appeals) wherein the appeal of the appellant was dismissed and the Order-in-Original was upheld. Issue 1: Refund claim of Education Cess and S&H Education Cess - The appellant filed a refund claim for Education Cess and S&H Education Cess under exemption Notification No. 56/2002-CE. - The original authority rejected the claims stating that the Education Cess and S&H Education Cess were not levied under the Acts mentioned in the notification. - The appellant approached CESTAT, which remanded the matter back to the Commissioner (Appeals) without insisting on pre-deposit. - The appellant was eventually granted the refund after complying with the CESTAT's order. Issue 2: Parallel proceedings for recovery of self-credit/refund - Parallel proceedings for recovery of self-credit/refund of Education Cess and S&H Education Cess were adjudicated through different show cause notices. - The matter reached CESTAT, which held that the appellant is entitled to the refund. - The appellant applied for a refund of the amount deposited as pre-deposit and was granted the same. - The Commissioner (Appeals) dismissed the appeal of the appellant on merits, leading to the present appeal. Decision: - The appellant argued that they are entitled to the refund based on the SRD Nutrients case and that subsequent decisions should not affect past final decisions. - The High Court of Jammu and Kashmir held that the appellant should not be made to refund the amount based on subsequent decisions, as it would lead to endless litigation. - The Supreme Court upheld the decision of the High Court, dismissing the special writ petition filed by the department. - Considering the settled parallel proceedings and the compliance with the CESTAT's order, the impugned order was set aside, and the appeal of the appellant was allowed with consequential relief.
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