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2015 (12) TMI 733 - AT - Central ExciseDemand of education cess - whether the Education Cess is payable on Paper Cess for clearance of Paper and Paper Board - Held that:- CBEC vide Circular F.No.345/2/2004-TRU (Pt.), dt.10.08.2004, clarified that “as the Education Cess is calculated on the aggregate duties of Excise/Customs (excluding certain duties of Customs like anti-dumping duty, safe guard etc) levied and collected by the Department of Revenue, only such duties, which are (a) levied and collected as duties of Excise/Customs and (b) are both levied and collected by the Department of Revenue should be taken into account for calculating Education Cess.” - It is clear from the Board Circular F.No.262/2/2008-CX.8, dt.07.01.2014 that a cess levied under an Act, which is administered by Ministry of Finance (Department of Revenue) but only collected by Department of Revenue under the provisions of that Act, cannot be treated as a duty, which is both levied and collected by Department of Revenue. The Board further clarified that the Education Cess is not to be calculated on cesses which are levied under Acts administered by the Department/Ministries other than the Ministry of Finance (Department of Revenue) but are only collected by the Department of Revenue in terms of those Acts. Thus, it is clear that the amount collected by the Ministry of Finance (Department of Revenue), levied by the other Ministry cannot be treated as duty. There is no dispute that the Paper Cess levied by other than the Ministry of Finance (Department of Revenue), and therefore, demand of Education Cess on Paper Cess cannot be sustained. - Decided against Revenue.
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