COMMISSIONER OF CUSTOMS Vs. DCW LIMITED

JUDGEMENT

(1.) THIS Civil Miscellaneous Appeal is filed at the instance of the Revenue as against the order of the Customs, Excise & Service Tax Appellate Tribunal, South Zonal Bench at Chennai [2006 (206) E.L.T. 1024 (Tri. - Chennai)], by raising the following substantial questions of law : - -

(2.) WE have perused the decision of the Mumbai Tribunal. We find that Ministry of Finance clarified in the proceedings dated 8 -7 -2004 in D.O.F. No. 334/3/2004 -TRU on the specific issue as to whether goods that are fully exempted from excise duty/customs duty or are cleared without payment of excise duty/customs duty (such as clearance under bond of fulfilment of certain conditions) would be subjected to Cess. It was stated therein that since education cess has to be calculated at the percentage on the duty liability, when the goods are fully exempted from excise duty or customs duty, are chargeable to Nil duty or are cleared without payment of duty under specified procedure such as clearance under bond, the question of education cess to be levied does not arise.