M\/s T.S. Tech Sun India Pvt. Ltd. Versus CGST & CE, Alwar
Central Excise
2018 (9) TMI 1483 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 13-7-2018
Appeal No. E\/51142\/2018-DB – A\/52736\/2018-EX[DB]
Central Excise
Mr. Anil Choudhary, Member (Judicial) And Mr. C.L. Mahar, Member (Technical)
\nMs. Sukriti Das, Advocate – for the appellant
\nMs. Tamana Alam, D.R. – for the respondent
\nORDER
\nPer Anil Choudhary:
\nThe present appeal has been filed against the Order-in-Appeal No. 33 to 38496-544(SM)CE\/JPR\/2018 dated 2.2.2018 passed by the Commissioner (Appeals), Central Excise & CGST, Jaipur
\n2. The brief facts of the case are that the appellants have established their factories situated in the State of Rajasthan and were operating under Rajasthan Investment Promotion Scheme which was notified by Government of Rajasthan with the objective of facilitating investment in the establishment of new enterprises. Under the various schemes of the Rajasthan Government, the <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n have been filed. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the appellants are covered by the Investment Promotion Schemes of the Rajasthan Government. In terms of the various schemes of the Rajasthan Government, the appellants are required to discharge their VAT liability by making payment of the same. Out of such VAT credited to the Government, a certain portion is disbursed back to them in the form of subsidies. Such disbursement happens in the form of VAT 37 B, challan which can be utilized in subsequent periods to discharge VAT liability. The crux of the dispute in the present case is 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 ac<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n dy 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 Rajasthan payment of VAT using such Challan are considered legal payments of tax. In view of the above, Revenue is not correct in taking the view that VAT liability discharged by utilizing such subsidy challans cannot be taken as VAT actually paid. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" M\/s T.S. Tech Sun India Pvt. Ltd. Versus CGST & CE, AlwarCentral Excise2018 (9) TMI 1483 – CESTAT NEW DELHI – TMICESTAT NEW DELHI – ATDated:- 13-7-2018Appeal No. E\/51142\/2018-DB – A\/52736\/2018-EX[DB]Central ExciseMr. Anil Choudhary, Member (Judicial) And Mr. C.L. Mahar, Member (Technical) Ms. Sukriti Das, Advocate – for the appellant Ms. Tamana Alam, D.R. – … Continue reading “M\/s T.S. Tech Sun India Pvt. Ltd. Versus CGST & CE, Alwar”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14045","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14045"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14045\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n3. With the above background we heard Ms. Sukriti Das, Ld. Counsel for the appellant as well as Ms. Tamana Alam, Ld. DR for the Department.
\n4. The Ld. Counsel for the appellant explained in detail the scheme of the Rajasthan Government regarding the grant of subsidy for new enterprises. He explained that the VAT is initially paid to the Government of Rajasthan before a portion of the same is granted as subsidy in the form of Challan Form 37B. Such challan is one of the modes which is allowed to be utilized for payment of VAT in the subsequent period along with other modes of payment including cash and input tax credit. He contended that the Revenue has wrongly proceeded under the presumption that the tax paid through 37B Challan does not represent actual payment of tax. He stressed on the fact that the scheme of the Rajasthan Government is not in the nature of exemption from payment of VAT but requires the VAT to be actually paid. Consequentially he submitted that in<\/p>\n
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\n10. It is pertinent to reproduce the observations of the Tribunal in the Welspun Corporation Ltd. case
\n“5.1 The Respondent 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<\/p>\n
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