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TMI Blog2023 (6) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... er of M/S. KTV HEALTH FOOD PVT. LTD. VERSUS THE COMMISSIONER OF CUSTOMS (PREVENTIVE) , TIRUCHIRAPALLI [ 2021 (10) TMI 119 - MADRAS HIGH COURT] while extending the benefit of the Board s clarification dated 10.1.2020 has held that the benefit of the Board s circular cannot be denied to the importer on the ground that Education Cess is different component from BCD. In the aforesaid decision the Hon ble High Court made it clear that benefit of the Board s circular dated 10.1.2020, which permits the payment of basic customs duty or additional customs duty through MEIS scrips by virtue of its clause 11, cannot be denied for education cess or higher and secondary education cess being a different component. The issue involved herein is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through duty credit scrips issued under the Merchandise Export from India Scheme (MEIS) in terms of notification No. 24/2015-Cus. dated 8.4.2015. During the period December, 2017 to October, 2019 they debited MEIS scrips for discharging Social Welfare Surcharge amount of Rs.48,42,471/- and also for discharging Education Cess and Secondary Higher Education Cess amount of Rs.5,59,278/- for the period December, 2017 to February, 2018. According to revenue, notification No. 24/2015 which has been relied upon by the appellant for discharging through MEIS scrips permits utilization of those scrips only for payment of BCD and accordingly a show cause notice dated 21.11.2019 was issued to the appellant demanding the amounts of Rs.48,42,471/- tow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit of the Board s circular cannot be denied to the importer on the ground that Education Cess is different component from BCD. I have also gone through the aforesaid decision of the Hon ble High Court and the relevant paragraphs of it are reproduced as under:- 25. When that being the statutory declaration made by the Act of Parliament i.e., the Finance Act, 2004 and 2007, we cannot have any different view to state that there were different components. What is the duty to be imposed on the imported goods first be calculated and accordingly, 2% of education cess and 1% of secondary and higher education cess shall be levied and imposed. Hence, when the importer pay the duty, he shall also pay the cess which become part and parcel of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the citation, as the issue decided in the said case, in fact the principle enunciated in that case if it is culled out, certainly would support the case of the petitioner and not the respondent. Therefore, this Court has no hesitation to state that, the reasons stated in the impugned order rejecting to give the benefit under Circular No. 2/2020 is not supported by any legal basis. Therefore, the said reasons are unsustainable and therefore, based on such reason, since the rejection has been made through the impugned order, it is also equally unsustainable. Hence, it is liable to be interfered with. 28. In view of the aforesaid discussions, this Court is inclined to pass the following orders : The impugned order is hereby qua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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