Can Education Cess be levied in Backward States | H&R Block Blog
impact of gst on road transport
Impact of GST on Road Transport Sector
December 23, 2017
Blog about impact of GST on FMCG sector in India
Impact of GST on FMCG Sector in India
December 24, 2017
Show all

Education Cess Cannot Be Levied as Excise Duty is Exempt in Backward States

Can Education Cess be levied as Excise Duty

Within a family or community, people generally help the one who can’t help him/herself or perhaps he/she just needs a helping hand to stand up firmly on his/her own feet. In a country, it is the job of the government to take care of those who require a helping hand by doing what Is necessary. Backward states in the north-east such as Assam, Jammu & Kashmir, Meghalaya, Tripura, Manipur, etc., where the population is less, need government incentives to boost the economy, such as exemption from excise duty of goods manufactured in the states, which was granted, under notification 20/2007 CE, for a period of ten years.

 

To boost and encourage businesses to set up manufacturing units in backward states, under notification 20/2007, companies were entitled to claim refund of duty under CENVAT credit. The appellant, SRD Nutrients Private Ltd, recently appealed to the Supreme Court, as they were charged Education and Higher Education cess and only refunded excise duty. The court found in favor of the appellant and granted refund of Education and Higher Educaton cess also, as the Education cess surcharge is applied at 2% of excise. Therefore, as excise in this case is nil, there can be no charge of Education cess and the appellant was entitled for the refund of the charges of Education and Higher Education cess.

Click here to read entire circular.

Annalakshmi Ekambaram
Annalakshmi Ekambaram
Annalakshmi is a content writer at H&R Block India. She enjoys writing on a variety of topics that are simplified so that everyone can easily understand the topics. Her rich background varies from Education to Training.

Leave a Reply

Your email address will not be published. Required fields are marked *