TAFE LTD. Vs. CCE

JUDGEMENT

(1.) AFTER examining the records and hearing both sides, we find that the appeal itself can be finally disposed of at this stage. Accordingly, after dispensing with predeposit, we proceed to deal with the appeal.

(2.) THE appellants are engaged in the manufacture of tractors [Chapter 87 of the First Schedule to the Central Excise Tariff Act]. During the period August 2004 to December 2005, they had paid automobile cess leviable under the Industries (Development and Regulation) Act 1951, on their products when cleared from factory. The department issued a show -cause notice demanding education cess (leviable under Section 93, Finance Act 2004) as a percentage of the automobile cess so paid. This demand was contested on the ground that no education cess was leviable on any amount of cess levied by the Central Govt. in another Ministry. This objection was overruled and the adjudicating authority and the first appellate authority upheld the demand of education cess against the party. Hence the present appeal.

(3.) EDUCATION cess under Section 93 of the Finance Act, 2004 is one levied as a duty of excise at the prescribed rate, on the aggregate of all duties of excise which are levied and collected by the Central Govt. in the Ministry of Finance (Department of Revenue) under the provisions of the Central Excise Act or under any other law for the time being in force. Automobile cess was not levied by the Central Govt. in the Ministry of Finance (Department of Revenue), though collected by officers of that department. Hence no education cess is liable to be demanded as a percentage of automobile cess.