Per C. Satapathy : Heard both sides. This appeal filed by Revenue involves a small amount of Rs. 42,789/- (ranging from Rs. 11 to Rs. 19,233/- in respect of the 16 impugned Bs/E) but relates to an important question of law as to whether the newly imposed Education Cess of 2% is leviable on goods cleared under the Duty Entitlement Pass Book (DEPB) Scheme. We are informed by both sides that there is no precedent decision on this issue.

2. Chapter VI of the Finance (No. 2) Act, 2004 imposes education cess on imported goods @ 2% of duties of customs levied and collected on such goods:-

Extract from the Finance (No. 2) Act, 2004

"81. Education Cess - (1) Without prejudice to the provisions of sub-section (11) of Section 2, there shall be levied and collected, in accordance with the provisions of this Chapter as surcharge for proposes of the Union, a cess to be called the Education Cess, to fulfil the commitment of the Government to provide and finance universalized quality basic education.

(2) The Central Government may, after due appropriation made by Parliament by law in this behalf, utilise, such sums of the money of the Education Cess levied under sub-section (11) of Section 2 and