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TMI Blog2015 (9) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... s held that debit of education cess and in terms DEPB scheme so also exemption notification was impermissible in law – Whether tribunal has jurisdiction to hold and declare that notification/circulars issued by Board are inconsistent to legislature – Held that:- duty exemption remission scheme and duty exemption pass book scheme are essentially to promote economic growth and in terms of new policy adopted by Government of India – Education cess on imported goods shall be in addition to any other duties of customs chargeable on such goods under Customs Act, 1962 or any other law for the time being in force – As per view taken by Gujarat high court in case of Gujarat Ambuja Exports Ltd. [2012 (7) TMI 679 - GUJARAT HIGH COURT] if customs duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No.45/02/Customs dated 22 April 2004. On finalization of the assessment, the benefit of this notification was extended to all the bills of entries inter alia, exempting duties leviable subject to the conditions that the duties leviable were debited from the relevant pass book under a scheme known as DEPB scheme. The education cess at 2% on these duties was also debited from the duties of DEPB as per clause of the Finance Bill 2004. 6) The respondent protested against the debit of education cess by submitting various letters addressed to the Assistant Commissioner of Customs. They did not insist on issuance of show cause notice. However, they did not get satisfactory solution and therefore, preferred an appeal. That appeal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the said Finance Act specify the Education Cess as 2% of the customs duty levied and collected. In the case of imports under the DEPB scheme, which are fully exempt, the customs duty is nil. Hence, the education cess being 2% of the customs duty is also nil. If it were the intention of the Parliament to debit and credit education cess for imports under DEPB scheme, then the quantum of cess would have been specified in absolute terms with a notification similar to Notification No.45/2002 with similar conditions. That is, however, not the case. On the other hand, the cess has been specified at the rate of 2% of the customs duty in relative terms. In which case, it becomes nil for exempted DEPB imports. Accordingly, we hold that no edu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... May 2013. 11) The Tribunal's view is endorsed not only by the High Court of Gujarat but equally by the High Court of Madras in Commissioner of Customs, Tuticorin vs. DCW Ltd. 2014(306) E.L.T. 398 (Mad.) and the High Court of Andhara Pradesh in Commissioner of C.Ex. Visakhapatnan vs. Kedia Overseas Ltd. 2014 (305) E.L.T. 268 (A.P.). Our attention is invited to the judgments of the Gujarat and Andhra Pradesh High Courts. 12) After hearing both sides we find that the Gujarat High Court has extensively dealt with this issue. It has expressed an opinion that the duty exemption remission scheme and the duty exemption pass book scheme are essentially to promote economic growth and in terms of the new policy adopted by the Government of I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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