2010 (4) TMI 512 - AT - Central Excise

Demand and Penalty - applicability of Rule 8 of Central Excise Rule, 2002. Although section 93 of Finance Act, 2004 sets out that Education Cess levied under section 91 of the Finance Act, 1994 shall be a duty of excise, Rule 2(e) of Central Excise Rule, 2002 defines duty as duty payable under section 3 of Act. Education cess is payable under Rule 8 of Central Excise Rule, 2002 for delay in payment of cess. Impugned order set aside.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled that the demand for cess payment cannot be raised under Rule 8 of the Central Excise Rules, 2002. Cess is leviable under the Finance Act, not the Central Excise Act, so Rule 8 does not apply to delay in cess payment. The tribunal set aside the order and allowed the appeal.