Area based Excise Duty exemption not cover exemption from Education Cess, NCCD

Area-based Excise Duty exemption not the cover exemption from Education Cess, NCCD

Area-based Excise Duty exemption does not cover exemption from Education Cess, NCCD

When a particular kind of duty is exempted, other types of duty or cess imposed by different legislation for a different purpose cannot be said to have been exempted. Further future duties can not be presumed to be part of exemption notification issued earlier to levy of duty

The proposition urged that simply because one kind of duty is exempted, other kinds of duties automatically fall, cannot be accepted as there is no difficulty in making the computation of additional duties, which are payable under NCCD, education cess, secondary and higher education cess.

Applicable Date of Duties/Cess

NCCD was made applicable by Finance Act 2001. Education cess was made applicable by the Finance Act 2004 and Secondary Higher Education Cess was made applicable by the Finance Act 2007.

Supreme Court in SRD Nutrients had held that service tax exemption by Board Circular extends to the exemption from education and Secondary Higher education cess.

However, in the present decision Court held that The most unfortunate part is that the binding decision of a larger bench consisting of three-Judges of this Court in Union of India

Similarly, the Circular issued by Central Board of Excise and Customs in 2011, is of no avail as it relates to service tax and has no force of law and cannot be said to be binding concerning the interpretation of the provisions by the courts.

statutory notification must cover specifically the duty exempted. When a particular kind of duty is exempted, other types of duty or cess imposed by different legislation for a different purpose cannot be said to have been exempted