2013 (11) TMI 1664 - AT - Central Excise

Levy of Education Cess and Secondary and Higher Education Cess on the total excise duty leviable - Held that - Education Cess and Secondary and Higher Education Cess is not leviable on the goods which were cleared to DTA from an EOU unit - appeal allowed.

Summary

Issues:
Stay petitions for waiver of pre-deposit of differential duty, interest, and penalties on the main appellant and individuals; Applicability of Education Cess and Secondary and Higher Education Cess on excise duty leviable on clearances of finished products in DTA.

Analysis:
The judgment pertains to three stay petitions seeking the waiver of pre-deposit of differential duty, interest, and penalties imposed by the adjudicating authority on the main appellant and individuals. The adjudicating authority held that the main appellant is obligated to pay Education Cess and Secondary and Higher Education Cess on the total excise duty leviable on clearances of finished products in DTA, in accordance with the proviso to Section 3(1) of the Central Excise Act, 1944.

During the hearing, it was noted that the appeals could be disposed of as they were limited in scope. Consequently, the stay petitions were allowed, and the condition of pre-deposit was waived to proceed with the appeals' disposal. The counsel highlighted a previous decision by the Bench in a similar case and pointed out that the issue had been upheld by a Larger Bench of the Tribunal in another case, establishing a precedent.

The departmental representative reiterated the adjudicating authority's findings and emphasized the similarity of the issue to the one in the previous case mentioned by the appellant's counsel. Upon examination, the Tribunal found the issue in the present case to be identical to the previous case. The Tribunal upheld the decision of the Larger Bench, ruling that Education Cess and Secondary and Higher Education Cess are not applicable to goods cleared to DTA from an EOU unit. Consequently, the impugned order was deemed unsustainable and set aside, leading to the allowance of the appeals.

In conclusion, the impugned order was set aside, and the appeals were allowed based on the established precedent regarding the non-applicability of Education Cess and Secondary and Higher Education Cess on goods cleared from an EOU unit to DTA.