TMI Blog2015 (4) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... T] has considered the issue - Accordingly, as per the aforesaid decision, the assessee/respondent herein will not be liable to pay any excise duty on the sales tax amount which was retained under the Incentive Scheme up to 30th June, 2000. However, this component of sales tax which was retained by the assessee after 1.7.2000 shall be includible in arriving at the transaction value and sales tax sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 1989 on the yarn and waste, as issued by the State of Rajasthan. Under this Incentive Scheme though the respondents were collecting the full incidence of sales tax from its buyer, 75% thereof was retained by the respondents and only 25% of the said sales tax collected was payable and paid to the State Government in terms of the Incentive Scheme. Since the remaining 75% of the amount of sales tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his argument of the respondents was also negatived by the Commissioner in this aforesaid order. Aggrieved by the said order, the respondents preferred an appeal before CEGAT. CEGAT allowed the appeal on merits and set aside the order of the Commissioner holding that the aforesaid amount of 75% of the sales tax component retained by the respondents was not includible while calculating the excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amendment, that the assessee would be entitled to claim deductions towards sales tax from the assessable value and sales tax incentive which is retained by the assessee namely 75% sales tax amount in this case. The Court also held that this position changed after the amendment in Section 4 with effect form 1.7.2000 and in arriving the transaction value the amount of 75% which was retained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present one, where the legal position and interpretation of unamended Section 4 and the position after the amendment in the said provision with effect from 1.7.2000 was in a fluid state, it would not be appropriate to levy the penalty. In the aforesaid circumstances the present appeals are allowed in part by sustaining the Commissioner's Order-in- Original passed on 10.3.2003 insofar as it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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