2006 (9) TMI 44

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.... the exemption notification is that an eligible manufacturer first discharges duty on the goods and then files monthly refund applications for the refund of the duty paid and after due verification, eligible refund is allowed. It is a condition that "the manufacturer first utilizes the whole of Cenvat credit available to him on the last day of the month ..........and pays only the balance amount in cash." The amount of duty paid in cash is liable to be refunded. 3.The appellant filed claims for refund of duty paid in cash during the months of September 2005 and October 2005. Out of amounts claimed, Revenue denied the refund of about Rs. 10 lakhs for the month of September 2005 and about Rs. 9 lakhs for the month of October 2005. These amou....

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....uty for the purpose of payment of education cess and that utilisation is clearly within the provisions of sub-rule (4) of Rule 3 and restriction placed in sub-rule 7(b) has no application to it. As regards the objection that the education cess is not a duty of excise, reliance is placed by the appellant on Section 93 of the Finance Act, 2004. Sub-section (1) of that Section states that the education cess levied under Section 91 "shall be a duty of excise". The submission is that this declaration in the section levies no room for doubt as to whether education cess is a duty of excise for the purpose of the exemption notification and other purposes. Learned counsel also clarifies that this dispute is not relevant in the present case inasmuch ....