Refund of Education Cess and Higher Education Cess follows full excise duty exemption under area-based notifications.

Where excise duty is fully exempt under an area-based exemption notification, Education Cess and Higher Education Cess paid on the same clearances are also refundable. Applying the binding Supreme Court ratio, the tribunal found no separate basis to deny refund once the underlying duty liability stood exempted. The refund claims, having been allowed by the lower authorities, were therefore upheld as admissible to the assessees.

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Issues: Whether the assessees were entitled to refund of Education Cess and Higher Education Cess paid on clearances made under area based exemption notification.

Analysis: The dispute was covered by the earlier decision of the Supreme Court holding that where excise duty itself stands exempted, the Education Cess and Higher Education Cess paid along with such duty are also refundable. Following that binding ratio, no independent reason survived to deny the refund claims allowed by the lower authorities.

Conclusion: The refund of Education Cess and Higher Education Cess was held to be admissible to the assessees.

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