Within a family or community, people generally help the one who can’t help him/herself or perhaps he/she just needs a helping hand to stand up firmly on his/her own feet. In a country, it is the job of the government to take care of those who require a helping hand by doing what Is necessary. Backward states in the north-east such as Assam, Jammu & Kashmir, Meghalaya, Tripura, Manipur, etc., where the population is less, need government incentives to boost the economy, such as exemption from excise duty of goods manufactured in the states, which was granted, under notification 20/2007 CE, for a period of ten years.
To boost and encourage businesses to set up manufacturing units in backward states, under notification 20/2007, companies were entitled to claim refund of duty under CENVAT credit. The appellant, SRD Nutrients Private Ltd, recently appealed to the Supreme Court, as they were charged Education and Higher Education cess and only refunded excise duty. The court found in favor of the appellant and granted refund of Education and Higher Educaton cess also, as the Education cess surcharge is applied at 2% of excise. Therefore, as excise in this case is nil, there can be no charge of Education cess and the appellant was entitled for the refund of the charges of Education and Higher Education cess.