Refund of education cess and higher education cess through PLA remains available under the exemption notification despite later restriction notifications.

Education cess and higher education cess paid through PLA were treated as part of the duty eligible for refund or self-credit under Notification No. 56/2002-CE, so the assessee's claim extended to those cesses as well. The later restrictions in Notification No. 19/2008-CE and Notification No. 34/2008-CE were not applied, because those notifications had already been quashed by the High Court and the Tribunal followed that view. The exemption-based refund or self-credit claim was therefore accepted without the impugned restriction.

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Issues: (i) whether the assessee was entitled to refund or self-credit of education cess and higher education cess paid through PLA under Notification No. 56/2002-CE dated 14.11.2002; (ii) whether the refund or self-credit could be restricted by Notification No. 19/2008-CE dated 27.03.2008 and Notification No. 34/2008-CE dated 10.06.2008.

Issue (i): whether the assessee was entitled to refund or self-credit of education cess and higher education cess paid through PLA under Notification No. 56/2002-CE dated 14.11.2002.

Analysis: The entitlement to refund or self-credit of education cess and higher education cess was treated as flowing from the settled position that such cesses form part of the duty paid by the assessee. Since refund of duty paid through PLA was otherwise available, the same entitlement was held to extend to education cess and higher education cess as well.

Conclusion: The assessee was entitled to refund or self-credit of education cess and higher education cess paid through PLA.

Issue (ii): whether the refund or self-credit could be restricted by Notification No. 19/2008-CE dated 27.03.2008 and Notification No. 34/2008-CE dated 10.06.2008.

Analysis: The notifications imposing restrictions had already been quashed by the High Court, and the Tribunal followed that view. On that basis, the restriction on refund or self-credit under those notifications could not be applied against claims made under Notification No. 56/2002-CE dated 14.11.2002 for duty paid through PLA.

Conclusion: The refund or self-credit could not be restricted by Notification No. 19/2008-CE dated 27.03.2008 or Notification No. 34/2008-CE dated 10.06.2008.

Final Conclusion: The appeals succeeded and the assessee's claim for refund or self-credit under the exemption notification was accepted without the impugned restriction.

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