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2012 (8) TMI 374 - AT - Service TaxRecovery ordered of education cess refunded to exporters along with service tax, by virtue of exemption notifications where whole of service tax is exempt - Held that:- According to section 95(1) of Finance (No. 2) Act, 2004 and section 140 (1) of Finance Act, 2007. Education Cess and Secondary and Higher Education Cess are leviable and collected as service tax, and when whole of service tax is exempt, the same applies to education cess as well. Since Education Cess is levied and collected as percentage of service tax, when and wherever service tax is NIL by virtue of exemption, Education Cess would also be NIL. Henceforth, where education cess has been refunded to exporters along with service tax, by virtue of exemption notifications where whole of service tax is exempt, the same need not be recovered. Commissioner's orders for recovery of part of the refunds sanctioned are set aside.
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