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2024 (6) TMI 239 - AT - Central ExciseAdmissibility of refund of education cess and higher education cess along with central excise duty in terms of N/N. 56/2002-CE dated 14.11.2002 as amended - HELD THAT - The appellant is registered in the state of Jammu Kashmir and were availing benefit of area based exemption under Notification No. 56/2002-CE dated 14.11.2002. The said notification provides mechanism to give effect to aforesaid exemption by way of refund of duty paid through PLA. As per the procedure, the manufacturer avails Cenvat Credit of duty/cess paid by them on inputs and utilises whole of the CENVAT credit available with them on last day of the month for payment of Central Excise duty and Cess. The balance amount of duty is paid in cash and on application of refund, the refund is granted for payment of Central Excise made in cash only. The refund is granted by way of cash or by way of self credit in PLA. The above said issue is no more res-integra and stands finally decided by the decision of the Hon'ble Supreme Court in the case of M/S. UNICORN INDUSTRIES VERSUS UNION OF INDIA OTHERS 2019 (12) TMI 286 - SUPREME COURT wherein the Hon'ble Apex Court, after considering the provisions of N/N. 71/2003-CE dated 09.09.2003 has held that a notification has to be issued for providing exemption under the said source of power and that in the absence of notification containing an exemption to such additional duties in the nature of education cess and secondary and higher education cess, they cannot be said to have been exempted. By following the ratio of the decision in the case of M/s Unicorn Industries, it is opined that there is no infirmity in the impugned order vide which the refund of the education cess and higher secondary education cess has been denied. The impugned order is upheld - appeal dismissed.
Issues:
Whether the refund of education cess and higher education cess along with central excise duty in terms of Notification No. 56/2002-CE dated 14.11.2002 as amended, is admissible or not? Analysis: The appeal was against the Commissioner (Appeals) order rejecting the appellant's appeal. The issue was whether the refund of education cess and higher education cess along with central excise duty under Notification No. 56/2002-CE dated 14.11.2002 was admissible. The appellant, registered in Jammu & Kashmir, availed area-based exemption under the said notification. The appellant's refund was rejected by the adjudicating authority, upheld by the Commissioner (Appeals), leading to the current appeal. The Tribunal referred to the Supreme Court's decision in the case of M/s Unicorn Industries vs. Union of India, where it was held that a notification must be issued for providing exemption under the relevant source of power. In the absence of such notification exempting additional duties like education cess and higher education cess, they cannot be considered exempted. The provisions of Notification No. 56/2002-CE were similar to those in the Unicorn Industries case, and the Tribunal found no infirmity in denying the refund based on the Unicorn Industries decision. The Tribunal highlighted the importance of specific exemption notifications for different duties and cess imposed by various legislation. It emphasized that even if one duty is exempted, it does not automatically exempt other duties. The Tribunal also discussed the binding nature of decisions by Larger Benches on Smaller Benches, citing various precedents. Ultimately, the Tribunal upheld the impugned order, denying the refund of education cess and higher education cess, based on the Unicorn Industries decision and dismissed the appellant's appeal.
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