2018 (8) TMI 164 – CESTAT NEW DELHI – TMI – Valuation – inclusion of VAT in assessable value – Revenue was of the view that VAT liability discharged by utilising the investment subsidy granted in Form 37B cannot be considered as VAT actually paid, for the purpose of Section 4 of the Central Excise Act, 1944 – Held that:- The identical issue has come up before the Tribunal in the case of Shree Cements Ltd. V/s CCE [2018 (1) TMI 915 – 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. 50900 of 2018 – A/52624/2018-EX[DB] – Dated:- 23-7-2018 – Hon ble Mr. Anil Choudhary, Member (Judicial) And Hon ble Mr. C L Mahar, Member (Technical) Shri G K Sarkar, Shr Prashan Srivastava, Advocates for the Appellants Ms Tamana Aalam, AR for the Respondent ORDER Per : Anil Choudhary The present appeals have been filed aga
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y granted in Form 37B cannot be considered as VAT actually paid, for the purpose of Section 4 of the Central Excise Act, 1944. Accordingly, the Revenue proceeded to include such subsidy amounts in the value of the goods cleared by the appellants and demanded the difference of the duty. The impugned orders also charged interest and penalty. Being aggrieved, the appellants have filed the present appeals. 3. With this background we heard the Ld. Advocates for the appellant and Shri M.R. Sharma, Ld DR for the Revenue. 4. 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 Shree Cements Ltd. V/s CCE, Alwar 2018-TIOL-748-CESTAT-DEL where it was observed that:- 7. We have heard both sides at length and perused the appeal record. As out lined above, the appellants are covered by the Investment Promotion Schemes of the Rajasthan Government. In terms of the various schemes of the Rajasthan Government, the appellant
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egorically 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. In the present case we know that for the initial period the assessees are required to remit the VAT recovered by them at the time of sale of the goods manufactured. A part of such VAT is given back to them in the form of subsidy in Challan 37 B. Such Challans are as good as cash but can be used only for payment of VAT in the subsequent period. In terms of the scheme of the Government of Rajas
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set. 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 Challans. 12. In the result, the impugned orders are set aside and the appeals are allowed. 5. By following our earlier order (supra), we set aside the impugned order and allow the appeal with consequential relief, if any. ( Dictated and pronounced in the open Court ) – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com
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