Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)
Circular No. 921/11/2010-CX
New Delhi, the 10th May, 2010.
To,
Director Generals (All)
Chief Commissioners of Central Excise including LTU (All)
Commissioners of Central Excise (All)
Sir/Madam
Subject:- Leviability of Education Cess and Higher Education Cess on the
Stainless Steel Patta Patti or Aluminium Circles units working under compound
levy scheme – reg
References have been received from field formations on the issue of levy of
Education Cess and higher Education Cess on the Central Excise duty determined
under
Notification No. 17/2007-CE dated 1-3-2007 under compound levy scheme on
S.S. Patta/Patti and Aluminium Circles. It has been reported that the
manufacturers of these items have stopped paying Education Cess and higher
Education Cess on the ground that the amount determined under the compound levy
scheme is inclusive of Education Cess and higher Education Cess as is mentioned
in the compound levy scheme in respect of Pan Masala & Gutkha.
- The matter has been examined. It is clarified that education cess and higher
education cess would be required to be paid on S.S. Patta Patti and aluminium
Circles, covered by the compound levy over and above the notified Central Excise
duty as the same has not specifically been included in the compound levy amount
specified in the relevant notification. Moreover, there is no exemption provided
for the same. The comparison with compound levy scheme in respect of
PanMasala/Gutkha etc. is erroneous as the two schemes are covered under
different notifications. Whereas the notification No. 42/2008-CE dated 1.7.2008
in respect of Pan Masala/Gutkha specifically includes the Education Cess and
Higher Education Cess in the amount fixed under compound levy scheme, there is
no such stipulation in the scheme in respect of Stainless Steel Patta Patti and
Aluminium Circles in the Notification No. 17/2007-CE dated 1-3-2007.
- Trade and Industry may be informed.
- Receipt of this circular may be acknowledged
- Hindi version would follow.
Yours faithfully
(Madan Mohan)
Under Secretary (CX1 & 4)
F. No. 167/25/2010-CX.4