2013 (7) TMI 437 - AT - Central Excise

Refund claim of education cess and S&H education exempted goods - Held that - As per Hon ble Himachal Pradesh High Court in the case of Indo Farm Tractors & Motors Ltd. v. Union of India 2007 (7) TMI 150 - HIGH COURT, HIMACHAL PRADESH , while interpreting the provisions of Finance Act, 2004 vide which the education cess was levied held that in case the goods are exempted from payment of basic duty, the education cess is leviable - refund claim of education cess and S&H education was not entertainable. Decided against the Assessee.

Summary

Issues: Refund claim of education cess and S&H education cess

In this judgment by the Appellate Tribunal CESTAT NEW DELHI, the issue pertains to the refund claim of education cess and S&H education cess. The Tribunal had previously decided in favor of Revenue regarding this matter. The adjudicating authority was found to be in error about the provision of law relating to the cess. The Tribunal upheld the consistent view in favor of Revenue, citing a specific case law where the High Court held that education cess is leviable even if goods are exempted from basic duty. The Tribunal dismissed the appeals of four appellants as there was no provision for the refund of education cess. The ld. Commissioner (Appeals) also considered a clarification by CBEC, stating that education cess is not leviable on goods fully exempted from excise duty. The Appeals were dismissed as the refund claim of education cess and S&H education cess was deemed not entertainable according to the law.

The Tribunal emphasized that the adjudicating authority had erred in understanding the provision of law related to the cess. The decision was based on a consistent view favoring Revenue, as highlighted in a specific case where the High Court ruled that education cess is applicable even on goods exempted from basic duty. The Tribunal dismissed the appeals of the four appellants as there was no provision for the refund of education cess. Additionally, the ld. Commissioner (Appeals) referred to a CBEC clarification stating that education cess is not applicable to goods fully exempted from excise duty. Consequently, the Appeals were rejected as the refund claim of education cess and S&H education cess was considered not entertainable as per the law.