Dismissal of Appeal Against Education Cess on Duty-Free Imports Under DEPB Scheme

The appeal under section 130 of the Customs Act, 1962 against the Final Order of CESTAT regarding the levy of education cess on duty-free imports under the DEPB scheme was dismissed. The Court upheld CESTAT's decision, noting that the Government's intention was to fully exempt duties under the DEPB scheme without mentioning education cess. Previous CESTAT rulings on similar matters were considered final and unchallenged by the Revenue, leading to the dismissal of the appeal.

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Issues involved: Appeal u/s 130 of Customs Act, 1962 against the Final Order of CESTAT regarding levy of education cess on duty-free imports under DEPB scheme.

Summary:
The Commissioner of Central Excise appealed against the Final Order of CESTAT, which allowed the respondent's appeal regarding the levy of education cess on duty-free imports under the DEPB scheme. The respondent, an importer of edible refined oil, imported crude palm oil using DEPB scrips for duty payment. The Revenue collected education cess despite the plea against it. The CESTAT allowed the appeal based on previous decisions and the nature of the DEPB scheme.

The Senior Standing Counsel argued that the DEPB scheme exemption is conditional and does not cover education cess. However, the notification under Section 25(1) of the Customs Act exempts the duty, additional duty, and special additional duty for imports under the DEPB scheme, subject to certain conditions. The intention of the Government was to exempt the entire duty, indicating no restriction on levying education cess for duty-free imports under DEPB.

The Court noted that the Government's intention was to fully exempt duties under the DEPB scheme, without any mention of education cess. Previous CESTAT rulings on similar matters were final and unchallenged by the Revenue. Therefore, the appeal was dismissed as misconceived.

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