TMI Blog2018 (2) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... ce (Dr.) Satish Chandra, President And Hon ble Mr. V. Padmanabhan, Member (Technical) Rahul Tangri, Advocate for the appellant Sh. R. K. Mishra, AR for the Respondent ORDER Per: Justice (Dr.) Satish Chandra The present appeal is filed against the order in appeal No. IND-EXCUS-000-APP-185 186-17-18 dt. 25.09.2017 passed by the Commissioner (Appeals), Central Excise, Indore. The period of dispute is 2009 to 2012. 2. Brief facts of the case are that the appellant is engaged in the manufacture of CI Casting and Auto Parts. The appellant cleared the final products after paying Central Excise duty and also discharge VAT/CST on the direct sales. The appellant received the incentive from the Madhya Pradesh Government with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VAT liability. The crux of the dispute in the present case is whether such subsidy amounts are required to be included in the assessable value of the goods manufactured by the appellants, in terms of Section 4 of the Central Excise Act. As per the concept of transaction value outlined in Section 4, with effect from 01/07/2000, any sales tax/VAT actually paid can be deducted from the transaction value for payment of excise duty. Revenue has taken the view that payment of VAT using 37B Challans cannot be considered as actual payment of VAT. 8. Both sides have referred to the decision of the Apex Court in the case of Super Synotex India Ltd. In the above decision the Apex Court has categorically held that after 01/07/2000, unless the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The subsidy in the form of remission of sales tax was in fact a percentage of capital investment Separate assessment orders were thus issued by the assessing officer of the sales tax department from time to time towards the incentive scheme amount. The Competent Authority was required to necessarily pass order for remission of such tax separately for each tax period. The remission of tax is thus directly related to capital investment in fixed asset. There was no option to claim exemption from payment of sales tax. The quantum of remission was based upon the investment made in the fixed assets. The condition of the remission amongst others included to remain in production, employment of certain percentage of persons in assessee unit, and nu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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