2017 (8) TMI 352 - AT - Central Excise

Demand of Education cess and secondary and higher education cess on cesses imposed under the different statutes by the different Ministries other than the Ministry of Finance - Revenue is of the view that for determination of the aggregate of all duties of excise, the cesses levied by the Ministries of Industry and Labour are required to be included - Held that - the issue stands decided in favour of the appellant in the case of B. S. Patel v. CCE, Indore 2017 (3) TMI 1140 - CESTAT NEW DELHI , where it was held that Education cess (EC) and Secondary Higher Education Cess (SHEC) cannot be computed on the Cesses, which are levied under the Acts administered by the Departments/Ministries other than the Ministry of Finance (Department of Revenue), though the same are collected by the Department of Revenue as per provisions of those Acts - appeal allowed - decided in favor of appellant.

Summary

Issues:
Dispute over education cess and secondary/higher education cess calculation based on various statutes and ministries.

Analysis:
The appeals were filed against the Commissioner (Appeals) Customs & Central Excise Indore's order dated 01.02.2011 and 08.11.2011. The period in question ranged from July 2004 to October 2010. The main contention revolved around the calculation of education cess and secondary/higher education cess, considering other cesses imposed under different statutes by ministries other than the Ministry of Finance.

The appellant, engaged in cement manufacturing subject to excise duties, also paid various other cesses like Limestone & Dolomite Cess and cement cess under different Acts. The issue focused on the computation of education cess and secondary/higher education cess on the aggregate of excise duties levied by the Ministry of Finance. The appellant argued that only excise duties collected by the Ministry of Finance should be considered for education cess, not those levied by other ministries, citing relevant legal precedents supporting this view.

After reviewing the case and circular No.345/2/2004-TRU dated 10.08.2004, which clarified the inclusion criteria for education cess calculation, the Tribunal found in favor of the appellant. Relying on previous decisions like B. S. Patel v. CCE, Indore, the Tribunal held that education cess and secondary/higher education cess should not be computed on cesses levied by ministries other than the Ministry of Finance, even if collected by the Department of Revenue as per those Acts.

Based on the legal principles established in the cited cases and circular, the Tribunal set aside the impugned order and allowed all the appeals, ruling in favor of the appellant's position on the calculation of education cess and secondary/higher education cess.