The respondent is a manufacturer of pharmaceutical products. The respondent was located in the State of Sikkim. Vide Notification No. 20/2007-CE dated 25.04.2007, the Petitioner claimed a refund of education cess or higher education cess paid by them. The said refund was sanctioned to the petitioner as per the decision of the Supreme Court in the case of SRD Nutrients Private Limited. Thereafter, the Supreme Court in Unicorn Industries took a dissenting view from the one in SRD Nutrients. Consequent to the same, a show cause notice was issued for recovery of the refund sanctioned to the respondent. The adjudicating authority confirmed the demand. The said order was challenged before the CESTAT. The CESTAT set aside the demand order following the decision of the Tripura High Court in the case of Tripura Ispat. This order came to be challenged by the department before the Sikkim High Court. The High Court held that when a refund was sanctioned pursuant to the judgment of the Supreme Court, it cannot be said to be an erroneous refund. If the contention of the department were to be accepted, it would result in chaos, and no lis would assume finality. Followed the Supreme Court in Saraswati Agro Chemicals Pvt. Ltd. and rejected the appeal.
Commissioner of CGST & C. Ex. v. Alkem Laboratories Limited—Tax Appeal No. 01 of 2024 [Sikkim HC]
