Education cess base excludes sugar cess levied by another ministry, even if described as a duty of excise.

Sugar cess was held to be outside the assessable base for education cess because education cess is computed only on duties of excise or customs levied and collected by the Department of Revenue under the Ministry of Finance. Although sugar cess is described as a duty of excise, it is levied under the Sugar Cess Act, 1982 through the Ministry of Consumer Affairs, Food and Public Distribution, not by the Ministry of Finance. Applying the same principle as earlier tribunal rulings, the cess was excluded from the base for education cess, and the issue was decided in favour of the assessee.

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Issues: Whether sugar cess is to be included in the assessable base for computing education cess.

Analysis: Sugar cess was levied by notification issued by the Ministry of Consumer Affairs, Food and Public Distribution under the Sugar Cess Act, 1982 read with the Sugar Development Fund Act, 1982, while the Board's clarification required education cess to be computed only on duties of excise or customs levied and collected by the Department of Revenue. The cited tribunal decisions applied the same principle and held that cesses not levied by the Ministry of Finance could not be taken into account for education cess. On that footing, sugar cess, though described as a duty of excise, was not a duty levied by the Ministry of Finance and therefore did not form part of the base for education cess.

Conclusion: Sugar cess is not to be taken into account while calculating education cess, and the issue is decided in favour of the assessee.

Ratio Decidendi: For computing education cess, only duties or cesses levied and collected by the Department of Revenue under the Ministry of Finance can be included; a cess levied by another ministry is excluded even if it is described as a duty of excise.

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