The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the interim order passed by the Commissioner (Appeals) for rejecting the claim of refund of educational cess on the ground of non-inclusion of refund in the area-based exemption notification.
Kashmir Steel Rolling Mills, the appellant assessee was availing of area-based exemption as contained under the notification. The Commissioner rejected the claim of refund filed by the assessee.
Thus the assessee appealed against the rejection of the claim of refund of educational cess by the Commissioner (Appeals).
Sudeep S. Bhangoo, the counsel for the assessee contended that the assessee lodged a refund claim after due verification, an amount paid on account of educational cess, an amount paid on account of higher educational cess, and an amount being excess claim claimed as per the law and liable to be sustained.
Ravinder Jangu and Shivani, the counsel for the revenue relied on the decisions made by the lower authorities and contended that there was no provision for refund of educational cess and higher educational cess under the notification and that the refund of the same was rightly rejected.
It was further submitted that the notification envisaged was the refund of the duty payable and not the duty paid.
The bench observed that when a particular kind of duty was exempted, other types of duty or cess imposed by different legislation for a different purpose cannot be said to have been exempted.
The two-member bench comprising S. S. Garg (Judicial) and P. Anjani Kumar (Technical) upheld the rejection of the claim of refund while dismissing the appeal filed by the assessee.
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