2017 (3) TMI 9 - AT - Central Excise

Whether Education and Secondary and Higher Education Cess is chargeable on Sugar Cess - CBEC Circular No. 345/2/2004-TRU(Pt.) dated 10.08.2004 - Held that - eard the learned counsel for respondent-assessee. She has submitted that this Tribunal in the case of Sahakari Khand Udyog Mandli Ltd Vs CCE Daman reported at 2008 (8) TMI 98 - CESTAT AHMEDABAD has held that Sugar Cess though levied as duty of Excise the said Cess is not levied by Ministry of Finance and by relying upon the said Board of Circular dated 10.08.2004 Sugar Cess cannot be included for the purpose of computation of Education Cess - Decided in favor of the assessee.

Summary

Issues involved:
Whether Education and Secondary and Higher Education Cess is chargeable on Sugar Cess.

Analysis:

Issue 1: Education and Secondary and Higher Education Cess on Sugar Cess
In the present case, the Revenue filed four appeals questioning the chargeability of Education and Secondary & Higher Education Cess on Sugar Cess. The show cause notices in each appeal proposed the recovery of specific amounts as Education Cess and Secondary & Higher Education Cess on the assessable value of Sugar Cess paid by the respondents. The respondents argued that Education Cess cannot be collected on Sugar Cess based on a CBEC Circular and a previous Tribunal order. The Original Authority confirmed the demand, but the Commissioner (Appeals) set it aside relying on the CBEC Circular. The Tribunal considered the precedent set by a previous case and held that Sugar Cess, not being levied by the Ministry of Finance, should not be included for the computation of Education Cess. Consequently, the appeals filed by Revenue were dismissed.

This judgment clarifies the applicability of Education and Secondary & Higher Education Cess on Sugar Cess, emphasizing the importance of relevant Circulars and precedent decisions in determining tax liabilities. The Tribunal's reliance on past rulings underscores the consistency required in tax assessments and the significance of legal interpretations in resolving disputes related to tax liabilities.