Is Education Cess payable on Advance Licence, DFRC, EPCG and DEPB Schemes?

By Vijay Kumar

Board has clarified on this issue

1. Advance Licences: Imports against Advance Licences are exempt from all duties of customs and, therefore, it follows that education Cess at 2% would not be leviable on such imports
2. DFRC: As the additional duty of customs is payable, Education Cess is also payable
3. EPCG Scheme: the goods attract a concessional duty of 5% and so education cess is payable.
4. DEPB: the Education Cess @ 2% would also be debited from the DEPB scrip.

CBEC Circular No. 5/2005 dated 31.1.2005