TaxTMI 
TaxTMI 
2016 (12) TMI 1851
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....evy scheme formulated for this commodity issued under Rule 15 of the Central Excise Rules, 2002. The relevant Notification applicable during the period under dispute was notification no. 34/2001 CE dated 28.6.2001 as amended from time to time. This notification had fixed the rate of compound levy payable at the rate of Rs. 15,000/- per month for cold rolling machine which was increased to Rs. 30,000/- per month vide amending notification dated 1.3.2006. The dispute in the present case is whether the manufacturers who have opted for compound levy are liable to pay, in addition to the rate fixed under the notification, the Education cess which were payable during the relevant time. These manufacturers paid the cess and subsequently claimed re....
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...., as may be specified in such notification. (ii) The Central Government may also specify by notification the manner of making an application for availing of the special procedure for payment of duty, abatement, if any, that may be allowed on account of closure of a factory during any period, and any other matter incidental thereto". 8. The term "duty‟ was defined under Rule 2(e) of the said Rules to mean the duty payable under Section 3 of the Central Excise Act, 1944. The definition clause in Rule 2 also clarified under item No. (i) that the words and expressions used in the said Rule and not defined but are defined in the Act shall have the meaning respectively assigned to them in the said Act. 9. Section 3 of the said Act ....
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.... Finance Act, 2004 whereas the higher education cess was levied under Section 138 of the Finance Act, 2007. The education cess so levied under Finance Act cannot be said to be excise duty levied in terms of Section 3 of the said Act. The issue regarding the same had arisen before the Tribunal in the matter of CCE, Jammu v. M/s. Jindal Drugs Limited and various other matters which were disposed of by the Tribunal on 12-8-2009 by final Oral Order No. 900A to 1143A/2009-Ex. holding therein that "Undisputedly, the levy of cess is under totally independent enactment i.e. Finance Act, 2004 and Finance Act, 2007. However, both the said enactments cannot be read as forming part of the Central Excise Act nor both Acts are required to be read togethe....
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....r paragraph 2 shall pay a sum calculated at the rate specified in the said notification, subject to the conditions laid down in the said notification and such payments shall be in full discharge of his liability for duty leviable on his production of such cold re-rolled stainless patta/patties, or aluminium circles during the period for which the said sum has been paid. Referring to the word "duty‟ in the said clause it was the contention, as is revealed from the records, of the respondents that on payment of duty determined under the compounded levy scheme, the entire duty liability of the manufacturer would stand discharged and that therefore they were not liable to pay the education cess or higher education cess. Once it is clear t....
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....espect of which assessee can opt to pay the duty of excise on the basis of such factors as may be relevant to production of such goods and at such rate as may be notified for that purpose. It does not relate to exemption of duty liability imposable and recoverable under other statutory provisions, once he opts for the compounded levy scheme. On the other hand, considering the phraseology of Rule 15 read with Rule 2(e) of the said Rules, it is evident that the scheme under the said Rule would apply to the duties payable under Section 3 of the said Act. If the contention sought to be raised on behalf of the assessee is accepted, it would virtually result in construing the Rule 15 of the said Rules as granting exemption from payment of all the....