Payment of Secondary and Higher Education Cess under wrong account code

[SPIC Ltd.]

The Secondary and Higher Education cess (SHE CESS) has been introduced during the Budget 2007. When it was introduced, the accounting codes were not alloted and hence the SHE CESS was remitted mentioning 'Yet to be alloted' in the TR 6 Challan. The dept stated that the cess has been remitted under wrong accounting code and demanded the duty once again. The assessee argued by taking legal shelter under ST Circular 58/7/2003 dt. 20.05.03 and F. No. Coord/13-6/Head of A/c/06-07/Vol-VI/317 dt. 30.03.07. I need to know whether any judgment was pronounced on this subject matter by any appellate authorities in order to defend the case strongly.

[Surender Gupta]

You are not required to pay secondary and higher education again. See: 2008 -TMI - 30349 - CESTAT, AHMEDABAD

[SPIC Ltd.]

Thank you very much for your valuable opinion

AI Summary

Payment under wrong account code for education cess does not require a duplicate remittance, per appellate guidance. Payment of Secondary and Higher Education Cess entered as 'Yet to be alloted' on the TR 6 challan and thereby recorded under an incorrect or pending accounting code raises whether the initial remittance is effective. Reliance on departmental circulars about challan accounting and an appellate authority decision supports the position that such a remittance constitutes a valid payment and that duplicate remittance should not be demanded.