clean energy cess

[mahadevan sankaran]

Chennai Port Customs levies Education cess and Higher Education cess on Clean Energy cess on import coal,which works out to Rs 51.50 per MT. Please clarify as to whether such levy of education and higher education cess on another cess,namely,Clean Energy Cess is correct? Mahadevan

[Surender Gupta]

Pl. read section 83 of the Finance Act, 2010, which stipulates that "......a cess to be called the Clean Energy Cess, as duty of excise....". Therefore the nature of clean energy cess is duty of excise which is levied on specified goods being produced. Whereas Eduction cess which was imposed first time in 2004 vide section 93 of the Finance Act (no.2) 2004, stipulated that, Eduction cess shall be calculated on the aggregate of all duties of excise  (including special duty of excise or any other duty of excise but excluding Education Cess on excisable goods). Therefore levy of Education cess and Higher Education Cess on import of coal appears to be correct.

[mahadevan sankaran]

But notification no 28/2010-CE and 29/2010-CE both dated 22-06-10 exempt goods to which clean energy cess applies from education cess and higher education cess respectively.

AI Summary

Debate Over Education and Higher Education Cess on Clean Energy Cess for Imported Coal: Conflicting Interpretations Arise A query was raised regarding the legality of levying Education Cess and Higher Education Cess on the Clean Energy Cess for imported coal at Chennai Port Customs. A response cited Section 83 of the Finance Act, 2010, indicating that the Clean Energy Cess is treated as a duty of excise, justifying the additional cesses. However, a counterpoint referenced notifications 28/2010-CE and 29/2010-CE, which exempt goods subject to the Clean Energy Cess from these additional cesses. The discussion reflects differing interpretations of the applicable tax regulations.