Commissioner Of CGST And Central Excise Jammu vs. M/S Saraswati Agro Chemicals PVT LTD Jammu

Facts

The Commissioner of CGST and Central Excise, Jammu (Appellant) filed an appeal before the High Court of Jammu & Kashmir and Ladakh against an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The CESTAT had set aside orders passed by the Commissioner (Appeals) and the Adjudicating Authority, directing a refund of Education Cess and Secondary & Higher Education Cess to M/S Saraswati Agro Chemicals Pvt. Ltd. (Respondent). This decision was based on the Supreme Court's ruling in 'M/s SRD Nutrients Pvt. Ltd. V. Commissioner of Central Excise, Guwahati'. A similar batch of appeals filed by the Appellant against CESTAT orders had been dismissed by a Coordinate Bench of the High Court on May 23, 2022. The present appeal also challenged a similar order on identical grounds.

Held

The High Court dismissed the appeal filed by the Commissioner of CGST and Central Excise, Jammu. The Court noted that the present appeal was against a CESTAT order that was similar to a batch of appeals previously considered and dismissed by a Coordinate Bench of the High Court on May 23, 2022. The grounds raised in the current appeal were also identical to those dealt with in the earlier judgment. To maintain parity and consistency, the Court decided to dismiss this appeal on the same terms and conditions as laid down in the previous judgment. Any interim directions that were subsisting at the time of the order were vacated. The ratio decidendi is that appeals with identical facts and grounds, challenging orders similar to those already decided by a coordinate bench, should be dismissed on the same basis to ensure judicial consistency.

Key Issues

1. Whether the CESTAT was correct in directing the refund of Education Cess and Secondary & Higher Education Cess to the assessee in light of the Supreme Court's decision in M/s SRD Nutrients Pvt. Ltd. V. Commissioner of Central Excise, Guwahati? The Appellant argued that the present appeal was filed against a CESTAT order that was similar to those considered and dismissed by a Coordinate Bench of the High Court on May 23, 2022, on identical grounds. Therefore, the Appellant contended that this appeal should also be dismissed on the same terms to maintain parity. The Respondent, M/S Saraswati Agro Chemicals Pvt. Ltd., did not record any specific arguments in the judgment. However, their entitlement to the refund was based on the Supreme Court's decision in M/s SRD Nutrients Pvt. Ltd. V. Commissioner of Central Excise, Guwahati, which was relied upon by the CESTAT.