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2019 (5) TMI 1617 - AT - Central ExciseValuation - remission in the nature of subsidy - additional consideration or not? - inclusion of 75% VAT refunded by the State Government to the noticee under the Madhya Pradesh Industrial Investment Promotion Assistance Scheme, 2004/2010 in the assessable value - HELD THAT:- The transaction value includes all the payments made by the buyer to the assessee. However, in the instant case, the subsidy has been underpaid to assessee by the State Government as a financial assistance Industrial Promotion Scheme of MP State Government. Only the mode of payment is by way of crediting the sales tax head under VAT challan in favour of the appellant. Thus, it could not be said that the amount is in the nature of additional consideration. In the present case, the remission is in the nature of subsidy which the appellant was receiving from the State Government in the form of VAT 37B Challans and not from the buyers of the appellant. The said remission was not only as good as cash but can also not be considered as an additional consideration. Reliance placed in the case of SHREE CEMENT LTD. SHREE JAIPUR CEMENT LTD. VERSUS CCE, ALWAR [2018 (1) TMI 915 - CESTAT NEW DELHI] wherein it was held that where assesses are required to remit the VAT recovered by them at the time of sale of goods manufactured and a part of such VAT is given back to them in the form of subsidy in VAT 37b Challans, such Challans are as good as cash but for the limited purpose of being used for the payment of VAT in the subsequent period. The Tribunal has clarified that in terms of the scheme of Government of Rajasthan, payment of VAT using such Challans are the legal payments of tax. Appeal dismissed - decided against Revenue.
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