TMI Blog2014 (8) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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. - E/28211/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient based subsidy policy w.e.f 1.4.2010 (w.e.f. 1.5.2010 for Single Super Phosphate) in continuation of the erstwhile concession scheme for decontrolled P K fertilizers. The purpose of the concession scheme, according to the appellants, is to provide fertilizers to the farmers at subsidized prices. The concession was disbursed to the manufacturers/importers and State Government ensures that MRP is indicated in respect of SSP. The MRP so decided has been constant till 31.3.2010. 2.1 Taking a view that the subsidy received by fertilizer companies from the Government is required to be added to the assessable value and charged to duty, proceedings were initiated culminating in confirmation of duty demand for ₹ 25,35,88,216/-. In add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and not any additional consideration given by the Government by way of subsidy. (v) Subsidy is different from discounts as it enhances the income of the manufacturer whereas discounts reduce the income of the manufacturers. (vi) The nutrient based subsidy received from the Ministry of Chemicals and Fertilizers is an additional consideration and the same should form part of the transaction value' under Section 4 of the Central Excise Act, 1944. 2.3 It was submitted that in 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 gr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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