Area-based exemption supports refund of education cesses paid from PLA where the Supreme Court has settled the issue.

An assessee availing area-based exemption under Notification No. 39/01-CE was entitled to refund of Education Cess and Secondary & Higher Education Cess paid from PLA because the controversy was already covered by the Supreme Court's ruling on the same issue. In view of that settled position, denial of refund was not sustainable, and the exemption notification supported the refund claim. The impugned order was therefore set aside.

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Issues: Whether an assessee availing area based exemption under Notification No. 39/01-CE dated 31/07/2001 is entitled to refund of Education Cess and Secondary & Higher Education Cess paid from PLA.

Analysis: The entitlement to refund stood covered by the Supreme Court's decision on the same controversy. In view of that settled position, the denial of refund could not be sustained.

Conclusion: The assessee was held entitled to refund of Education Cess and Secondary & Higher Education Cess under the notification, and the impugned order was set aside.

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