Education Cess computation on imports required fresh review after the Board circular was not properly considered.

Education Cess on imported goods required fresh examination because the refund claim had been accepted on the footing that cess was collected twice, once on countervailing duty and again on the aggregate of countervailing duty including cess and basic duty. The Tribunal found that the Board's circular dated 8-7-2004 on the computation method had not been properly considered by the Commissioner (Appeals). The impugned orders were therefore unsustainable on the existing record, and the matter was remitted to the Commissioner (Appeals) for reconsideration after giving the respondent an opportunity of hearing.

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Issues: Whether the computation of Education Cess on imported goods was correctly made and whether the matter required reconsideration in light of the Board's circular.

Analysis: The Tribunal noted that the respondent's refund claim had been allowed on the basis that Education Cess had been collected twice, once on countervailing duty and again on the aggregate of countervailing duty including Education Cess and basic duty. It further noted that the Board's circular dated 8-7-2004 prescribing the method of calculation had not been properly considered by the Commissioner (Appeals). As the correct basis of computation required fresh examination, the impugned orders could not be sustained on the existing record.

Conclusion: The issue was remitted to the Commissioner (Appeals) for fresh consideration after granting an opportunity of hearing to the respondent, and the appeals were allowed by way of remand.

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