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TMI Blog2018 (2) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture 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 a view to promote the investment. The appellant holds a valid entitlement certificate under the MPIIPAS and availed the investment subsidy upto the maximum of eligible fixed investment, paid annually on the basis of 50% of the VAT/CST paid. The subsidy was adjusted as the advance payment towards the VAT /CST. The department is of the view that the amount of the subsidy received from the M.P. Government is includible in the assessable value of the goods cleared during the period of dispute. Being aggrieved, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 sales tax/VAT is actually paid to the good, no benefit towards excise duty can be given in terms of Section 4(3)(d). However, we note that the Tribunal in the case of Welspun Corporation Ltd. (Supra) has distinguished the decision of the Apex Court in the light of Gujarat VAT Act, 2003. In the Welspun Corporation Ltd. case, the assesse had opted for remission of tax scheme under which a portion of the VAT paid was remitted back to the assessee. The Tribunal held that such subsidy amounts are not required to the included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uantum 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 numerous other conditions as brought out in Para 9 of the impugned Order-in-Appeal. 11. By following the decision of the Tribunal in the Welspun Corporation Ltd. case we conclude that there is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans. 12. In the result, the impugned orders are set aside and the appeals are allowed." 5. By following our earlier order (supra), we set aside the impugned order and allow the appeal. 6. In the result, appeal filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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