M/S Coromandel International LTD Th Sunil Kumar vs. Union Of INDIA Th Secretary Minsitry Of Finance New Delhi And Others

Held

The Court held that the petitioner is entitled to the refund of Education Cess and Secondary & Higher Education Cess along with applicable interest. The Court found merit in the petition, noting that the CESTAT judgments in favour of the petitioner, allowing the refund of these cesses, had attained finality. This finality was reinforced by the High Court's dismissal of the Revenue's appeals and the Supreme Court's subsequent dismissal of the Revenue's SLP. The Court rejected the Revenue's plea to defer consideration based on a pending miscellaneous application before the Supreme Court, stating that the Supreme Court's order dated 04.07.2023 in M/s Saraswati Agro Chemicals Pvt. Ltd. covered the petitioner's case. The Court also addressed the Revenue's argument regarding the SRD Nutrients judgment being per incuriam, noting that the Supreme Court had already dealt with and dismissed such arguments, upholding the finality of the SRD Nutrients decision for the parties involved. The ratio decidendi is that judgments that have attained finality, even if based on a precedent that was later overruled, remain binding on the parties unless specifically set aside or reviewed through proper legal channels. The Court directed the respondents to release the refund within two months of receiving a copy of the order.

Facts

The petitioner, M/s Coromandel International Limited (Unit-II), sought a writ of mandamus to direct the respondents to release the refund of Education Cess and Secondary & Higher Education (SHE) Cess, along with interest, in compliance with a CESTAT judgment. The petitioner had set up a unit in Jammu & Kashmir and was entitled to excise duty exemption under Notification No. 56/2002-CE. While availing excise duty refunds, a dispute arose regarding the refund of education cess and SHE cess. The petitioner's claims for these cesses were initially denied. The petitioner's appeals before the CESTAT were allowed, relying on the Supreme Court's decision in SRD Nutrients Pvt. Ltd. The Revenue challenged these CESTAT orders before the High Court, which dismissed the appeals. The Revenue then filed an SLP before the Supreme Court, which was also dismissed, upholding the High Court's judgment. Despite these final orders, the petitioner had not received the refund and filed the present writ petition.

Key Issues

1. Whether the petitioner is entitled to a refund of Education Cess and Secondary & Higher Education Cess in light of the Supreme Court's judgment in SRD Nutrients Pvt. Ltd. v. Commissioner of Central Excise, Guwahati, (2018) 1 SCC 105, and subsequent High Court and Supreme Court judgments upholding the CESTAT orders in favour of the petitioner? Petitioner's Contention: The petitioner argued that the CESTAT judgments allowing the refund of education cess and SHE cess, which were upheld by the High Court and the Supreme Court, have attained finality. They contended that there is no legal impediment to releasing the refund and that the respondents are statutorily obligated to comply with these final orders. Revenue's Contention: The Revenue submitted that an application was pending before the Supreme Court seeking modification of the judgment in SRD Nutrients Pvt. Ltd. Therefore, they requested that the consideration of the petitioner's refund claim be deferred until the outcome of that application. They also argued that the SRD Nutrients judgment was per incuriam, citing a subsequent Supreme Court decision in M/s Unicorn Industries v. Union of India and others, (2020) 3 SCC 492.