Education Cess refund under area-based exemption upheld after Supreme Court ruling treated it as duty of excise.

Refund of Education Cess was held admissible under Notification No. 39/2001-CE because the issue was governed by the Supreme Court ruling treating Education Cess as a duty of excise covered by the area-based exemption. The contrary view of the Uttarakhand High Court was distinguished, and the impugned orders were not sustained. On that basis, the refund claim was accepted in favour of the assessee.

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Issues: Whether refund of Education Cess was admissible under Notification No. 39/2001-CE.

Analysis: The issue was governed by the Supreme Court decision holding that Education Cess, being a duty of excise, was covered by the area based exemption notification. In view of that binding decision, the contrary view taken in the Uttarakhand High Court decision was distinguished and the impugned orders could not be sustained.

Conclusion: Refund of Education Cess under Notification No. 39/2001-CE was admissible, and the appeals were allowed in favour of the assessee.

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