Coromandel International Limited Vs Union of India (Jammu and Kashmir High Court)
Jammu and Kashmir High Court held that refund of Education Cess and Secondary and Higher Education Cess [SHE Cess] in terms of exemption under Notification No.56/2002-CE is allowable. Accordingly, writ petition is allowed with direction to release refund of education and SHE Cess.
Facts- The petitioner is engaged in the manufacturing of goods falling under Chapter heading 38 of the Customs Tariff Act, 1962. In terms of Notification No.56/2002-CE dated 14.11.2002, the petitioner set up a new unit for manufacture of pesticides and commenced commercial production with effect from 2nd February, 2007. The petitioner was, thus, entitled to exemption (by way of refund) in respect of the goods manufactured by him for a period of ten years from the date of commencement of commercial production.
Notably, the petitioner-Unit qualified for exemption under Notification No.56/2002-CE, as amended, and was availing the refund of excise duty paid in cash. There is, however, a dispute with regard to the refund of education cess and secondary and higher education cess payable in addition to the excise duty.
The petitioner, who had been denied the refund on account of education cess and secondary and higher education cess agitated its case before CESTAT. The appeals filed by the petitioner were allowed by the CESTAT. Feeling aggrieved, the Revenue challenged the orders of CESTAT before this Court. This Court vide its judgment dated 23rd May, 2022 dismissed the Revenue’s appeals in the case of the petitioner.
