CX - Once education cess is added to customs duties to arrive at aggregate of customs duties, question of adding it again does not arise: CESTAT
By TIOL News Service
CHANDIGARH, JUNE 14, 2018: ASSESSEE, a 100% EOU, cleared goods to DTA but did not pay education cess and higher education cess on the duty of excise.
A SCN was issued to the assessee demanding education cess and higher education cess on the duty of excise leviable under the proviso to section 3(1) of the CEA, 1944, for the third time, after the assessee had paid education cess on two occasions, first on CVD and second as cess leviable on Customs duty.
The demand was confirmed along with interest and equivalent penalty.
In appeal before the CESTAT, the Assessee submitted that the issue is squarely covered by the following decisions -
Sarla Performance Fibers Ltd vs. CCE, Vapi - 2010-TIOL-408-CESTAT-AHM
Kumar Arch Tech Pvt Ltd vs. CCE, Jaipur-II – 2013-TIOL-614-CESTAT-DEL-LB
The Bench noted that the issue of leviability of education cess and higher education cess for third time on the duty of excise under proviso to Section 3(1) of the Act in respect of clearance of goods in DTA made by 100% EOU is no longer res integra and has been decided in favour of assessee by Tribunal in the cited cases .
Following the same, the order of Commissioner (A) was set aside and the appeal was allowed.
(See 2018-TIOL-1829-CESTAT-CHD)
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