sir, as per 28/2010, 29/2010 those items have clean energy cess are exempted from Ed & se cess.
but department has given the notice that excise duty on coal has come in the year 2011. it was introduced as 1 percent and cenvat eligible 5 percent .
Now asking to pay 2 percent ed cess and 1 percent se cess.
do we need to pay the cess or not
Education cess on countervailing duty questioned as department demands cesses on excise levy for coal despite claimed exemptions. Whether education cess and secondary and higher education cess are payable on excise duty or countervailing duty on coal is disputed: the department demands cesses on the excise levy while the taxpayer relies on clean-energy related exemptions that purportedly excluded those items from education cesses; the only recorded reply requests further factual clarification and does not decide the legal question. (AI Summary)