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2020 (1) TMI 1626 - AT - Central ExciseValuation - disbursement of Capital Subsidy to the appellant industry, by way of Form 37-B (vouchers) - utilization of such vouchers in discharge of their sales tax liability - amount received from the State Government by way of capital subsidy is required to be added in the assessable value of the excisable goods cleared or not? HELD THAT:- The said issue is no longer res integra and the Division Bench of this Tribunal in the case of SHREE CEMENT LTD. SHREE JAIPUR CEMENT LTD. VERSUS CCE, ALWAR [2018 (1) TMI 915 - CESTAT NEW DELHI], has held that the view of the Revenue that VAT liability discharged by utilising the investment subsidy granted through Form 37B vouchers cannot be considered as VAT not paid for the purpose of valuation under Section 4 of the Central Excise Act, 1944. The State Government has, instead of disbursing the capital investment subsidy by cash or cheque, issued Form 37B vouchers, which could be used for the purpose of payment of sales tax liability. It was also held that after setting up of the industry initially the assessee was required to remit the VAT to the Government. As per eligible criteria, the capital investment subsidy is disbursed in Form 37B Challan/Vouchers. Such challans are as good as cash, but can only be used for payment of VAT/Sales Tax in the subsequent period. Such capital investment subsidy cannot form part of the assessable value under Section 4 of the Central Excise Act for calculation of the duty. The impugned order is set aside - Appeal allowed.
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