Exemption of Education Cess and Secondary Education Cess

[Nagarajan PV]

Dear Expert,

Please clarify whether the following :

1.Education cess levied for CUSTOMS - 2% is exempted vide notification no.054/2017

2. Secondary & Higher Education cess of Customs - 1% is exempted vide notification no.055/2017.

As the Education levied under for Central Excise is already exempted earlier, these two are meant for Customs??

Please clarify

Regards,

Nagarajan PV

[PAWAN KUMAR]

Dear Sir,

The said notification provides that the cesses (Sec.&Higher Ed.Cess and Ed.Cess) in case of import will not be leviable on IGST and Compensation Cess.

[Ramesh Kothari]

My opinion

No import duty payable by SEZ

 

[vk agarwal]

Education cess on IGST has been exempted but continues on basic customs duty. So no education cess while calculating IGST but it has to be added to the customs duty @ 3%

[Nagarajan PV]

Dear Sir,

Thanks for your reply and I am clarified.

However as per notification Duties leviable under Sub-Section 7 and 9 of Section 3 of Customs Tariff Act 1975 are exempted. However as per Customs Tariff Act Sub-Section 9 of Section 3 is not available. Is there error in the notification or the Customs Tariff Act is not updated or my understanding is wrong ??

I had read the latest Customs Tariff Act 1975 from the below link.

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cst2012-13/cst-act-1213.pdf

If possible clarify.

Regards,

Nagarajan

AI Summary

Education cess exemption applies to IGST and compensation cess on imports, while cess still attaches to basic customs duty.
Notifications exempt the Education Cess and the Secondary and Higher Education Cess from levy on IGST and on Compensation Cess for imports; however, Education Cess continues to be levied on basic customs duty. A respondent observes that SEZ imports are not subject to import duty. The notifications reference duties under sub sections 7 and 9 of section 3 of the Customs Tariff Act, 1975, and a discrepancy is noted because sub section 9 is not present in the Act as consulted.