Assessee wins appeal as Tribunal exempts Education Cess on DEPB imports

The Tribunal ruled in favor of the assessee, setting aside the impugned order and allowing the appeal. It clarified that Education Cess is not chargeable in cases of import under DEPB under Notification No. 45/2002-Cus.

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Issues involved:
Whether Education cess is payable in case of clearance of imported goods by debiting the duty in DEPB Passbook under Notification No. 45/2002-Cus.

Analysis:

Issue 1: Education Cess on imported goods under DEPB Passbook
The appellant argued that previous judgments favored the assessee, citing cases such as Gujarat Ambuja Exports Ltd. and Commissioner of Customs Vs. Reliance Industries Ltd. The Revenue contended that Education Cess is applicable unless customs duty is fully exempted. The Tribunal noted that similar issues were decided in previous judgments upheld by High Courts and the Supreme Court. The Tribunal referred to the Bombay High Court judgment in Reliance Industries Ltd., stating that Education Cess is in addition to customs duty and should be levied unless duty is fully exempted.

Issue 2: Applicability of Education Cess under Notification No. 45/2002-Cus
The Tribunal considered the argument that Education Cess is not chargeable in case of imports under DEPB under Notification No. 45/2002-Cus based on various judgments, including those from the High Courts of Gujarat and Madras. The Tribunal distinguished the judgment in TANFAC Industries Ltd. based on subsequent developments in the law. Ultimately, the Tribunal concluded that Education Cess is not applicable in cases of import under DEPB under Notification No. 45/2002-Cus.

Final Decision
Based on the analysis of relevant judgments, the Tribunal ruled in favor of the assessee, setting aside the impugned order and allowing the appeal. The judgment clarified that Education Cess is not chargeable in cases of import under DEPB under Notification No. 45/2002-Cus.

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