2018 (12) TMI 1096 - AT - Central Excise

Refund of Education Cess and Secondary Higher Education Cess - Area Based Exemption availed - N/N. 39/2001-CE dated 31.07.2001 - Held that - The issue is no longer res integra as the eligibility of the refund of Education Cess and Secondary Higher Education Cess has been decided in favor of the assessee by the Hon ble Supreme Court in the SRD Nutrients (P) Ltd. 2017 (11) TMI 655 - SUPREME COURT OF INDIA , where it was held that The appellants were entitled to refund of Education Cess and Higher Education Cess which was paid along with excise duty once the excise duty itself was exempted from levy - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Whether the appellants are entitled to a refund of Education Cess and Secondary Higher Education Cess under the Area Based Exemption Notification No. 39/2001-CE dated 31.07.2001.

Analysis:

Issue 1: Refund entitlement under the Area Based Exemption Notification
The judgment dealt with the common issue of whether the appellants are entitled to a refund of Education Cess and Secondary Higher Education Cess under a specific notification. The appellant M/s Indian Steel Corporation Ltd argued their case, citing the Hon’ble Supreme Court judgment in the SRD Nutrients (P) Ltd. vs. CCE Guwahati 2017 (355) ELT 481(SC) as a precedent. The appellant's representative also mentioned the Tribunal's order in the matter of Asr Multi Metals (P) Ltd., which followed the Supreme Court judgment. Additionally, references were made to other relevant judgments such as Genus Electrotech Ltd., Shaifali Rolls Ltd., and Ms. Man Industries Ltd.

Issue 2: Legal representation and submissions
During the proceedings, it was noted that none appeared for the appeals of Ruchi Soya Industries Ltd. However, Sh. Dhaval Shah, representing M/s Indian Steel Corporation Ltd, presented arguments citing relevant legal precedents. On the other side, Sh. Amit Mishra, Ld. Deputy Commissioner (AR), represented the Revenue and reiterated the findings of the impugned order.

Issue 3: Judicial decision and outcome
After considering the submissions from both parties, the Tribunal concluded that the issue of refund entitlement for Education Cess and Secondary Higher Education Cess had already been settled in favor of the assessee by the Hon’ble Supreme Court in the SRD Nutrients (P) Ltd. case. As a result, the impugned orders were set aside, and the appeals were allowed. The decision was pronounced in the open court, bringing the matter to a resolution based on the legal precedent established by the Supreme Court.