TRIPURA ISPAT (A UNIT OF LOHIA GROUP) Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner has challenged a show-cause notice dated 03.07.2020 issued by the Assistant Commissioner of Central Goods & Service Tax, Agartala, respondent No.3 herein calling upon the petitioner to show-cause why an amount of Rs.53,06,055/- which according to the said respondents was erroneously refunded to the petitioner should not be recovered under Section 11A of the Central Excise Act, 1944 along with interest.

(2.) Briefly stated the facts are as under :

(3.) The question of collecting education cess and higher education cess on such goods which were exempt from payment of excise duty, came up for consideration before a two-Judge Bench of the Supreme Court in case of SRD Nutrients Private Limited v. Commissioner of Central Excise, Guwahati, reported in (2018) 1 SCC 105. In the said decision it was held that the education cess and the higher education cess are in the nature of surcharge and when the primary tax i.e. the basic excise duty itself is exempt such additional levies cannot be collected. The Supreme Court concluded as under :