M/S. Jupiter Coke Industries vs. Union Of INDIA And 5 Ors

Held

The Court directed the respondents, specifically respondent Nos. 4, 5, and 6 (Commissioner of Central GST, Assistant Commissioner GST, and Superintendent GST), to refund the education cess and secondary and higher education cess collected from the petitioner for the period of July 2004 to January 2015. The reasoning was based on the petitioner's entitlement to exemption from excise duty under the North-East Industrial Policy and Notification No. 20/2017, and the acknowledgment by the revenue that a decision had been taken to refund such cess. The Court found merit in the petitioner's claim, supported by a prior identical ruling. The operative direction was for the refund to be processed within three months of receiving a certified copy of the order. No issue was expressly left undecided.

Facts

M/s. Jupiter Coke Industries, an industrial unit in Assam, filed a writ petition seeking a refund of education cess and secondary and higher education cess collected from July 2004 to January 2015. The petitioner claimed entitlement to 100% refund of central excise duty for 10 years under the North-East Industrial Policy, 2007, and Notification No. 20/2017 dated 24.04.2007. The petitioner argued that since excise duty itself was exempted, the cesses levied on excise duty should also not be leviable. The petitioner cited an identical case, WP(C) No. 5760 of 2018 (Kamakhya Plastics Pvt. Ltd –Vs- Union of India), decided on 27.08.2018, where a similar refund was directed. The Union of India acknowledged a decision by the competent authority to refund such cess.

Key Issues

1. Whether the petitioner is entitled to a refund of education cess and secondary and higher education cess collected for the period from July 2004 to January 2015, considering the exemption granted under the North-East Industrial Policy, 2007, and Notification No. 20/2017, which exempted central excise duty. Petitioner's Arguments: The petitioner contended that as excise duty itself was exempted under the industrial policy, the education cess and secondary and higher education cess, which are levied on excise duty, should not have been collected. They relied on the principle that a tax on an exempted item should also be exempted. The petitioner also referred to a previous High Court decision in a similar case (Kamakhya Plastics Pvt. Ltd –Vs- Union of India) directing the refund of such cesses. Revenue's Arguments: The learned Additional Solicitor General of India submitted that a decision had been taken by the competent authority in the Ministry of Finance to refund such cess, irrespective of whether the assessee had approached the High Court.