Assam Roofing LTD. vs. Union Of INDIA And 6 Ors.
Held
The Court held that the education cess and higher education cess levied at 2% of the excise duty partake of the character of excise duty itself. Consequently, the petitioner is entitled to a refund of the education cess and higher education cess paid from April 2004 to March 2014, in line with the Supreme Court's judgment in M/s SRD Nutrients Private Limited –vs- Commissioner of Central Excise, Guwahati. The Court noted a consensus between the parties on this issue. The respondents (authorities in the Department of Excise/Goods and Services Tax) were directed to make the appropriate calculation and refund the education cess and higher education cess within five months of receiving a certified copy of the order.
Facts
The petitioner, Assam Roofing Ltd., an industrial unit in Assam, claimed exemption from excise duty under the North East Industrial Policy of 1997. The policy allowed for exemptions for units commencing production after December 24, 1997, or those undertaking substantial expansion thereafter. The petitioner paid excise duty, education cess, and higher education cess. While excise duty was refunded as per the policy, a dispute arose regarding the refundability of the education cess and higher education cess. The petitioner sought a refund of these cesses for the period April 2004 to March 2014, relying on a Supreme Court judgment.
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 Policy, 1997, as per the Supreme Court's decision in M/s SRD Nutrients Private Limited –vs- Commissioner of Central Excise, Guwahati? The petitioner argued that the Supreme Court in M/s SRD Nutrients had definitively held that education cess and higher education cess partake of the character of excise duty. Therefore, if excise duty was exempted, these cesses should also be refunded. The petitioner also referred to a Meghalaya High Court order in a similar case where a refund was directed. The revenue (respondents) submitted, upon instruction, that they are bound by the Supreme Court's pronouncement in M/s SRD Nutrients and would refund the education cess and higher education cess paid by the petitioner.
Sections Cited
Finance Act of 2004, Central Excise Act of 1944
AI-generated summary — verify with the full judgment below
Page No.# 1/4 GAHC010185062018
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C) 5758/2018 1:ASSAM ROOFING LTD. A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 AND HAVING ITS FACTORY SITUATED AT BONDA, NARENGI, GUWAHATI AND REP. BY MR. M. L RAJAK, THE AUTHORISED SIGNATORY OF THE PETITIONER COMPANY AND R/O. HATIGAON CHARIALI, SIJUBARI, GUWAHATI-781038. VERSUS 1:UNION OF INDIA AND 6 ORS. REP. BY THE SECRETARY TO THE GOVT. OF INDIA, MINISTRY OF FINANCE, DEPTT. OF REVENUE, NORTH BLOCK, NEW DELHI. 2:THE UNDER SECRETARY TO THE GOVT. OF INDIA MINISTRY OF FINANCE DEPTT. OF REVENUE NEW DELHI. 3:THE JOINT SECRETARY TO THE GOVT. OF INDIA MINISTRY OF FINANCE DEPTT. OF REVENUE NEW DELHI. 4:THE COMMISSIONER GOODS AND SERVICE TAX (EARLIER KNOWN AS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX) BHANGAGARH G.S. ROAD GUWAHATI. 5:THE ASSTT. COMMISSIONER GOODS AND SERVICE TAX
Page No.# 2/4 DIVISION-II BHANGAGARH GUWAHATI-781005 ASSAM. 6:THE SUPERINTENDENT GOODS AND SERVICE TAX RANGE-II B GOODS AND SERVICE TAX DIVISION-II GUWAHATI ASSAM. 7:THE S
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