M/S. Gattani Industries vs. Union Of INDIA And 6 Ors.

Held

The Court held that the education cess and higher education cess paid by the petitioner are refundable. This decision was based on the Supreme Court's judgment in M/s SRD Nutrients Private Limited –vs- Commissioner of Central Excise, Guwahati, which established that these cesses are an integral part of the excise duty. The Court noted the consensus reached between the petitioner and the revenue authorities. Consequently, the Court directed the respondents, specifically respondent Nos. 4 to 6 (Commissioner of Central GST, Commissioner GST, and Assistant Commissioner GST), to calculate the refundable amount of education cess and higher education cess paid by the petitioner from January 2008 to December 2015. The refund process is to be completed within five months from the date of receipt of a certified copy of the order. No issue was expressly left undecided.

Facts

The petitioner, M/s. Gattani Industries, an industrial unit in Assam, sought a refund of education cess and higher education cess paid between January 2008 and December 2015. These cesses were levied under the Finance Act of 2004, in addition to excise duty. The petitioner had previously received a refund of excise duty under the North East Industrial and Investment Promotion Policy (NEIIPP), 2007. The core issue was whether the education cess and higher education cess were considered part of the excise duty for the purpose of refund under the NEIIPP, 2007. The petitioner relied on a Supreme Court judgment in M/s SRD Nutrients Private Limited vs. Commissioner of Central Excise, Guwahati, which held that these cesses partake of the character of excise duty itself.

Key Issues

1. Whether education cess and higher education cess are part of excise duty for the purpose of refund under the North East Industrial and Investment Promotion Policy, 2007? (Question of law) Petitioner's Arguments: The petitioner contended that the Hon'ble Supreme Court in M/s SRD Nutrients Private Limited –vs- Commissioner of Central Excise, Guwahati (dated 10.11.2017) had conclusively held that education cess and higher education cess levied at 2% of the excise duty partake of the character of excise duty itself. Therefore, the petitioner argued, they are entitled to a refund of these cesses for the period from January 2008 to December 2015, as the excise duty itself was exempted under notification No.20/2007-CE dated 25.04.2007. Revenue's Arguments: The learned ASGI, appearing for the Ministry of Finance and other revenue authorities, submitted that in the instant case, the authorities are bound to refund the education cess and the higher education cess paid by the petitioner from January 2008 to December 2015, by following the pronouncement of the Hon'ble Supreme Court in M/s SRD Nutrients Private Limited –vs- Commissioner of Central Excise, Guwahati.