2018 (2) TMI 89 - AT - Customs

Education cess on Clean Energy Cess - imported steaming (non-coking) coal - Held that - Education Cess and Secondary Education Cess as duty of Excise and duty of Customs are two different levies and as such Education Cess and Secondary Education Cess as duty of excise is exempted but not as duty as Customs - The legal provisions for calculation of aggregate duty of Customs and Education and Higher Education Cess leviable on such duty of customs are clear and there is no ambiguity in the same - appeal dismissed - decided against appellant.

Summary

Issues:
Calculation of Cess on Customs duty for imported steaming (non-coking) coal - Benefit of exemption available to Education Cess and Higher Education Cess on Clean Energy Cess.

Analysis:
1. The appellant contested the finalization of assessment, claiming that the exemption available to Education Cess and Higher Education Cess on Clean Energy Cess should extend to the calculation of Cess payable on Customs duty. The lower authorities held that Education Cess levied under the Finance Act, 2007 on imported goods specified in the Customs Tariff Act, 1975 would also apply to Clean Energy Cess as part of the aggregate of Customs duty.
2. The appellant's counsel argued that Clean Energy Cess is leviable as a Duty of Excise under the Finance Act, 2010, while Education Cess is levied on imported goods under the Finance Act, 2007. The appellant relied on Notification No.28/2010, claiming that goods liable to Clean Energy Cess are exempt from Education Cess. However, the lower authorities maintained that there is no automatic extension of exemptions from the Excise side to the Customs side.
3. The lower authorities and the appellant presented their arguments based on legal provisions and interpretations. The original authority extensively discussed the legal framework and provided a model calculation to support the final conclusion. The Education Cess on imported goods specified in the Customs Tariff Act, 1975, is considered a duty of Customs, calculated on the aggregate of Customs duties levied and collected.
4. The analysis highlighted the distinction between Education Cess and Secondary & Higher Education Cess as duties of Excise and Customs. The legal provisions for the calculation of aggregate Customs duty and the levies of Education and Higher Education Cess on such Customs duty were deemed clear and unambiguous. The case laws cited by the appellant were found irrelevant to the current dispute.
5. The appellate tribunal concurred with the lower authorities' analysis and dismissed the appeals, finding no merit in the appellant's submissions. The judgment was pronounced on 31.01.2018, upholding the decision regarding the calculation of Cess on Customs duty for the imported goods in question.