Excise duty exemption refund extends to education cess and higher education cess when levied as a percentage of duty.

Education cess and higher education cess, when levied as a percentage of excise duty, were treated as part of the excise duty framework, so the refund benefit attached to the underlying excise duty exemption also extended to those cesses. On that basis, the departmental authorities were required to compute the refund in line with the applicable exemption notification and return the cess amounts paid during the relevant period. The writ petition was disposed of with a direction to process and refund the education cess and higher education cess within the stipulated time.

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Issues: Whether the petitioner was entitled to refund of education cess and higher education cess for the period during which excise duty exemption was available under the applicable notification.

Analysis: The claim was considered in the light of the settled position that education cess and higher education cess, when levied as a percentage of excise duty, partake the character of excise duty. The parties also reached consensus that the departmental authorities were bound to extend the same refund benefit for the relevant period. The refund was directed to be worked out in accordance with the exemption notification applicable to the petitioner.

Conclusion: The petitioner was held entitled to refund of the education cess and higher education cess paid from January 2008 to December 2015.

Final Conclusion: The writ petition was finally disposed of by directing the departmental authorities to compute and refund the cess amounts within the stipulated period.

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