CESTAT allows Honda’s Appeal, Holds Education Cess Leviable only on ‘Levied and Collected’ Service Tax Amount

The CESTAT has allowed Honda's appeal and held that education cess is leviable only on the service tax amount that is both levied and collected. This ruling clarifies the basis for calculating education cess in relation to service tax. The tribunal's decision ensures that education cess is not imposed on amounts that were not actually collected as service tax. This interpretation provides a more precise and equitable application of the education cess provisions.