Education Cess cannot be levied twice on the same customs-duty equivalent measure for EOU clearances to DTA.

For clearances by a 100% Export Oriented Unit to the Domestic Tariff Area, Education Cess could not be levied separately once the customs duty equivalent to central excise duty on like goods had already been worked out. The Tribunal followed its earlier ruling in Sarala Performance Pvt. Ltd. and held that the same measure could not bear an additional cess. The assessee therefore succeeded, with consequential relief granted.

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Issues: Whether Education Cess was payable again on the amount worked out by calculating the customs duty equivalent for clearances made by a 100% Export Oriented Unit to the Domestic Tariff Area.

Analysis: The issue was already settled by the Tribunal decision in Sarala Performance Pvt. Ltd., which held that once the measure of customs duty equivalent to central excise duty leviable on like goods is worked out, Education Cess cannot be levied separately on the same clearances.

Conclusion: Education Cess was not payable again on such clearances, and the issue was decided in favour of the assessee.

Final Conclusion: The appeals succeeded and the appellants were granted consequential relief.

Ratio Decidendi: Where customs duty equivalent to central excise duty on like goods has already been worked out for clearances by a 100% Export Oriented Unit to the Domestic Tariff Area, Education Cess cannot be levied separately on that same measure.

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