2018 (3) TMI 1229 – CESTAT, NEW DELHI – TMI – Valuation – subsidy – includibility – Department is of the view that the amount of the subsidy received from the M.P. Government is includible in the assessable value of the goods cleared during the period of dispute – Held that: – the identical issue has come up before the Tribunal in the case of M/s. Pioneer Engineer Industries vs. CCE, Indore [2018 (2) TMI 9 – CESTAT NEW DELHI] where it was held that there is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans – appeal allowed – decided in favor of appellant. – Excise Appeal No. 51817 of 2017 – FINAL ORDER NO.50691/2018 – Dated:- 2-2-2018 – Mr. Justice (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) Shri Dhruv Tiwari, Advocate for the Appellants Shri S K Bansal, AR for the Respondent The present appeal is filed by the appellant against the Order-in-Original No. 24/2017 dated 31.8.2017. Disputed p
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vestment, paid annually on the basis of 75% of the VAT/CST paid being of the backward area. The subsidy was adjusted as the advance payment towards the VAT /CST. The department is of the view that the amount of the subsidy received from the M.P. Government is includible in the assessable value of the goods cleared during the period of dispute. Being aggrieved, the present appeal is filed by the appellant. 5. After hearing both sides and on perusal of record, it appears that the identical issue has come up before the Tribunal in the case of M/s. Pioneer Engineer Industries vs. CCE, Indore [Final Order No. 50392/2018 dated 25.1.2018 ] where it was observed that- 5. A5. After hearing both sides and on perusal of record, it appears that the identical issue has come up before the Tribunal in Shree Cement Ltd. vs. CCE, Alwar (Final Order No. 50189-50191/2018 dt. 18.01.2018) where it was observed that -fter hearing both sides and on perusal of record, it appears that the identical issue has c
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on 4, with effect from 01/07/2000, any sales tax/VAT actually paid can be deducted from the transaction value for payment of excise duty. Revenue has taken the view that payment of VAT using 37B Challans cannot be considered as actual payment of VAT. 8. Both sides have referred to the decision of the Apex Court in the case of Super Synotex India Ltd. In the above decision the Apex Court has categorically held that after 01/07/2000, unless the sales tax/VAT is actually paid to the good, no benefit towards excise duty can be given in terms of Section 4(3)(d). However, we note that the Tribunal in the case of Welspun Corporation Ltd. (Supra) has distinguished the decision of the Apex Court in the light of Gujarat VAT Act, 2003. In the Welspun Corporation Ltd. case, the assesse had opted for remission of tax scheme under which a portion of the VAT paid was remitted back to the assessee. The Tribunal held that such subsidy amounts are not required to the included in the transaction value. 9
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t a percentage of capital investment… Separate assessment orders were thus issued by the assessing officer of the sales tax department from time to time towards the incen sstive scheme amount. The Competent Authority was required to necessarily pass order for remission of such tax separately for each tax period. The remission of tax is thus directly related to capital investment in fixed asset. There was no option to claim exemption from payment of sales tax. The quantum of remission was based upon the investment made in the fixed assets. The condition of the remission amongst others included to remain in production, employment of certain percentage of persons in assessee unit, and numerous other conditions as brought out in Para 9 of the impugned Order-in-Appeal. 11. By following the decision of the Tribunal in the Welspun Corporation Ltd. case we conclude that there is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Ch
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