Exemption from excise duty does not automatically cover education cess or higher education cess unless expressly stated.

An exemption from excise duty under a notification does not, by itself, extend to education cess or higher education cess unless the notification expressly excludes those imposts. The notification in issue was held not to prohibit levy and collection of cess on the excise duty and additional excise duty otherwise payable on the goods. As a result, the cess remained payable despite the exemption notification, the relief against its collection was set aside, and the Revenue's challenge was accepted.

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Issues: Whether education cess and higher education cess were leviable on excisable goods cleared under the exemption notification.

Analysis: The liability to pay education cess and higher education cess was examined in the light of the exemption notification. It was held that the notification did not prohibit levy and collection of cess on the excise duty and additional excise duty payable on the goods. The exemption granted under the notification did not extend to the impost of education cess or higher education cess.

Conclusion: The cess remained payable despite the exemption notification, and the Revenue's appeals succeeded.

Final Conclusion: The order granting relief against collection of education cess and higher education cess was set aside, and the Revenue's challenge was accepted.

Ratio Decidendi: An exemption from excise duty under a notification does not, by itself, exempt the assessee from liability to education cess or higher education cess unless the notification expressly so provides.

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