Education cess on customs duty equivalent for EOU domestic clearances was held not separately leviable.

Education cess was not separately leviable on customs duty computed as the equivalent of central excise duty for clearances made by a 100% export oriented unit to the domestic tariff area. The issue was treated as covered by an earlier Tribunal decision, which held that once the measure of customs duty is worked out, education cess cannot again be charged on that amount. The matter was decided in favour of the assessee, and consequential relief followed.

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Issues: Whether education cess was leviable again on the amount computed by working out customs duty payable for clearances made by a 100% export oriented unit to the domestic tariff area.

Analysis: The issue was treated as covered by an earlier Tribunal decision holding that once the measure of customs duty equivalent to central excise duty is worked out, education cess is not separately leviable on clearances by a 100% export oriented unit to the domestic tariff area.

Conclusion: The issue was decided in favour of the assessee and the appeal was allowed with consequential relief.

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