TMI Blog2018 (2) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment of Rajasthan, payment of VAT using such Challan are considered legal payments of tax. In view of the above, Revenue is not correct in taking the view that VAT liability discharged by utilizing such subsidy challans cannot be taken as VAT actually paid. The Tribunal in the Welspun Corporation Ltd. [2017 (5) TMI 177 - CESTAT MUMBAI] case has concluded that there is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans. Appeal allowed - decided in favor of appellant. - Excise Appeal No. 52468 of 2016 - Final Order No. 50488/2018 - Dated:- 31-1-2018 - Hon ble Shri Justice Dr. Satish Chandra, President And Hon ble Shri V. Padmanabhan, Member (Technical) S/Shri K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds cleared by the appellants and demanded the differential duty. The impugned orders also charged interest and penalties on such differential duty. Aggrieved by the impugned orders, present appeals have been filed. 3. In this background, we heard Shri Amit Jain, learned Counsel for the appellant and Shri S.K. Bansal, learned DR for the Revenue at length and perused the appeal record. As out lined above, the appellants are covered by the Investment Promotion Schemes of the Rajasthan Government. In terms of the various schemes of the Rajasthan Government, the appellants are required to discharge their VAT liability by making payment of the same. Out of such VAT credited to the Government, a certain portion is disbursed back to them in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot required to the included in the transaction value. 5. In the present case, it is evident that for the initial period, the assessees are required to remit the VAT recovered by them at the time of sale of the goods manufactured. A part of such VAT is given back to them in the form of subsidy in Challan 37 B. Such Challans are as good as cash but can be used only for payment of VAT in the subsequent period. In terms of the scheme of the Government of Rajasthan, payment of VAT using such Challan are considered legal payments of tax. In view of the above, Revenue is not correct in taking the view that VAT liability discharged by utilizing such subsidy challans cannot be taken as VAT actually paid. 6. It is pertinent to reproduce the obs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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