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2014 (8) TMI 775 - AT - Central ExciseValuation of goods - subsidy received by fertilizer companies from the Government - Introduction of Concession Scheme for decontrolled Phosphatic and Potassic (P & K) fertilizers on adhoc bass w.e.f. 1.10.1992 - Held that:- Circular No.983/7/2014-CX dated 10.7.2014 , the Board has clarified that the subsidy given by the Government is not includable in the assessable value and Central Excise duty is not payable on the subsidy component provided by the Government. The grant of subsidy is given pursuant to an administrative decision taken by Government of India and payment of subsidy to the manufacturer by the Government cannot be regarded as discharge of any liability or obligation by the Government towards the purchasers of the fertilizers. The definition of ‘transaction value' deals with only such elements which otherwise may form part of value which a buyer is liable to pay to the assessee either by reason of sale or in connection with sale himself or on behalf of the assessees. Subsidy paid by the Government cannot be considered as an additional consideration includable for excise duty in accordance with statute - issue is covered by the Board's Circular and in our opinion also the subsidy cannot be considered as an additional consideration - Decided in favour of assessee.
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