Education and higher education cess cannot be computed on cesses outside the Department of Revenue base.

Education Cess and Secondary and Higher Education Cess are not leviable on cesses imposed under statutes administered by ministries other than the Ministry of Finance (Department of Revenue). Section 93 of the Finance (No. 2) Act, 2004 confines the cess base to duties of excise and customs levied and collected by the Department of Revenue, and the departmental circular clarifies that only duties satisfying both conditions enter the aggregate. Cesses under statutes administered by the Ministries of Industry and Labour, even if collected through the revenue machinery, fall outside that base and are excluded.

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Issues: Whether Education Cess and Secondary and Higher Education Cess could be computed on cesses levied under statutes administered by Ministries other than the Ministry of Finance (Department of Revenue).

Analysis: Section 93 of the Finance (No. 2) Act, 2004 makes the cess computable on the aggregate of duties of excise and customs levied and collected by the Department of Revenue. The departmental circular clarified that only those duties which are both levied and collected by the Department of Revenue are to be taken into account. The cesses levied under statutes administered by the Ministries of Industry and Labour, though collected through the revenue machinery, do not form part of that aggregate.

Conclusion: Education Cess and Secondary and Higher Education Cess are not leviable on the cesses imposed under statutes administered by departments other than the Ministry of Finance (Department of Revenue); the issue is decided in favour of the assessee and against the Revenue.

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