Greenlam Industries Ltd, Marudhar Polysacks Pvt Ltd, Vaishno Wire Pvt Ltd, Maharaja Cables, Wellmac Plastics Private Limited Versus C.G. ST C & C. E-Alwar And C.C.E. & S.T. -Jaipur-I, Commissioner Of Cgst & Central Excise-Jaipur-I (Appeal)
Central Excise
2018 (4) TMI 1552 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 11-4-2018
E/50001, 50041, 50152, 50153, 50158, 50159, 50185, 50186, 50188, 50189, 50193, 50225, 50226/2018-DB – Final Order No. 51427-51514/2018
Central Excise
E/50001, 50041, 50152, 50153, 50158, 50159, 50185, 50186, 50188, 50189, 50193, 50225, 50226, 50235, 50257, 50260, 50263, 50269, 50270, 50271, 50294, 50295, 50297, 50298, 50299, 50300, 50330, 50336, 50347, 50348, 50368, 50379, 50380, 50405, 50406, 50407, 50408, 50409, 50411, 50415, 50434, 50435, 50481, 50489, 50501, 50503, 50522, 50524, 50525, 50535, 50551, 50552, 50553, 50560, 50585,0599, 50603, 50606, 50615, 50639, 50694, 50703, 50704, 50705, 50722, 50727, 50743, 50744, 50763, 50775, 5
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Ltd, Budhia Steel, Pine Laminates Pvt Ltd, Sanwariya Furnaces Pvt Ltd, Shree Salasar Polyflex Pvt Ltd, Allied JB Friction Pvt Ltd, Aakriti Prime, Tokai Rubber Auto Parts Industries Pvt Ltd, Unik Dispoware Pvt Ltd, Takahata Precision India Pvt Ltd, Sanjo Forge India Pvt Ltd, Fine Products Pvt Ltd, TS Tech Sun Rajasthan Pvt Ltd, New Swan Enterprises (Unit IV), Inox Air Products Private Limited, Raghupati Casting P Ltd, Giri Raj Casting P Ltd, Galaxy Taps Private Limited Neemrana Steel Service Centre India, Trans Acnr Solutions P Ltd, Maruti Products Pvt Ltd, Sanjog Steels Pvt Ltd, BMI Industries, Fiem Industries Limited, Banglore Polycotters Pvt Ltd, Oji Jk Packaging P Ltd, Motherson Sumi Systems Ltd, Shriram Pistons & Rings Limited, Ramco Industries Ltd, Ujala Pumps Pvt Ltd, Veekay Polycoats Ltd, Century Metal Recycling Privte Ltd, Surya Metalloys Pvt Ltd, BMI Cable Pvt Lt, Rajshree Global Pvt Ltd, Bestex M M India Pvt Ltd, Satyam Plastfab Pvt Ltd, Easa Elevators Pvt Ltd, Suraksha Flex
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tating investment in the establishment of new enterprises under the various schemes of Rajasthan Government. The appellants (assessees) were eligible for subsidies as per the various schemes applicable to the assesses and they were required to deposit VAT/CST/SGST at the applicable rate with the Government and in terms of the scheme notified, will be entitled to disbursement of subsidy by the appropriated authorities. The subsidy concern is sanctioned and disbursed in Form 37B and as such challans in the form VAT 37B can be utilised for discharge of the VAT liability of the appellant for subsequent period. The Revenue was of the view that VAT liability discharged by the utilisation of the investment subsidy granted in Form 37B actually paid, for the purpose of Section 4 of the Central Excise Act. 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. Being aggrieved, the appellants
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whether such subsidy amounts are required to be included in the assessable value of the goods manufactured by the appellants, in terms of Section 4 of the Central Excise Act. As per the concept of transaction value outlined in Section 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.
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company opted for “Remission of Tax Scheme” and was thus eligible for the Capital subsidy in the form of remission of Sales Tax subject to the conditions to be fulfilled…. The subsidy in the form of remission of sales tax was in fact 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 incentive 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
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