Commissioner of CGST and Central Excise, Dibrugarh Vs M/S Oil India Limited (Gauhati High Court)
Summary: The Gauhati High Court considered two connected Central Excise Appeals concerning whether the limitation prescribed under Section 11B of the Central Excise Act, 1944 would bar refund of Education Cess (EC) and Secondary and Higher Education Cess (SHEC) that had been paid by the respondents under a mistake of law. The first appeal was C.Ex.App./1/2026 filed by the Commissioner of CGST and Central Excise, Dibrugarh against M/s Oil India Limited, while the connected appeal was C.Ex.App./4/2026 concerning Commissioner of Central Excise and Service Tax, Dibrugarh and M/s Oil and Natural Gas Commission Limited.
The respondents were engaged in exploration and production of petroleum crude falling under CTH 2709 of the Central Excise Tariff Act, 1985. Although the crude oil attracted nil rate of excise duty, the respondents were liable to Natural Calamity Contingent Duty (NCCD) under Section 136 of the Finance Act, 2001. They were also required to pay Oil Industry Development (OID) Cess under Section 15(1) of the Oil Industry (Development) Act, 1974. EC and SHEC were not payable on the OID cess where the OID cess had been paid to the Ministry of Oil and Natural Gas, Government of India. However, due to a mistaken understanding, the respondents paid EC and SHEC to the appellant.
