Refund of education cess and higher education cess follows excise duty exemption under industrial promotion notifications.

Education cess and higher education cess levied as a percentage of excise duty were treated as part of the duty for refund purposes where the underlying excise duty was exempt under the industrial exemption notifications issued under the North East Industrial and Investment Promotion Policy, 2007. The claim followed the Supreme Court position that such cesses partake the character of excise duty and are refundable when excise duty itself is exempt. On that basis, and as the respondents agreed to refund in line with that ruling, the petitioner was held entitled to refund of the cesses for the relevant period.

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Issues: Whether the petitioner was entitled to refund of education cess and higher education cess paid along with excise duty for the period 2004-2005 to 2014-2015 under the industrial exemption notifications.

Analysis: The claim turned on whether education cess and higher education cess, when levied as a percentage of excise duty, could be treated as part of the excise duty for the purpose of refund once the underlying excise duty stood exempted. The entitlement was governed by the exemption notifications issued under the North East Industrial and Investment Promotion Policy, 2007, and the issue stood concluded by the Supreme Court's ruling that such cesses partake the character of excise duty and are refundable when the excise duty itself is exempt. The respondents also agreed to grant the refund in line with that ruling.

Conclusion: The petitioner was held entitled to refund of the education cess and higher education cess for the relevant period.

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