2023 (9) TMI 962 - AT - Central Excise

Refund of education cess and secondary and higher education cess paid along with excise duty - N/N. 56/2002-CE dated 14.11.2002 as amended - HELD THAT - The 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 Notification No. 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. Further, the provisions of Notification No. 56/2002- CE dated 14.11.2002 are pari-materia to the provisions of Notification No. 71/2003-CE dated 09.09.2003. By following the ratio of the decision in the case of M/s Unicorn Industries, there is no infirmity in the impugned order vide which the refund of the education cess and higher secondary education cess has been denied. Impugned order upheld - appeal dismissed.

Summary

Issues Involved:
The only issue involved in all these appeals is whether the refund of education cess and secondary and higher education cess paid along with excise duty in terms of Notification No. 56/2002-CE dated 14.11.2002 as amended is admissible or not.

Comprehensive Details:

Issue 1: Refund of Education Cess and Higher Secondary Education Cess
The appellants, registered in Jammu & Kashmir, were availing area-based exemption under Notification No. 56/2002-CE dated 14.11.2002. The notification allowed for refund of duty paid through PLA. The Hon'ble Supreme Court in the case of M/s Unicorn Industries vs. Union of India held that a notification must be issued for providing exemption under the source of power, and in the absence of such notification, education cess and secondary and higher education cess cannot be considered exempted. The provisions of Notification No. 56/2002-CE dated 14.11.2002 are similar to Notification No. 71/2003-CE dated 09.09.2003, as per the decision in the case of M/s Unicorn Industries. Therefore, the refund of education cess and higher secondary education cess was denied based on this legal interpretation.

Decision:
Following the precedent set by the case of M/s Unicorn Industries, the Tribunal upheld the impugned orders denying the refund of education cess and higher secondary education cess. Consequently, all the appeals filed by the appellants were dismissed.

Note:
Separate judgments were not delivered by the judges in this case.