TMI Blog2018 (5) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 50675 of 2018, Excise Appeal No. 50692 of 2018 - Final Order No. 51951-51952 /2018 - Dated:- 18-5-2018 - Hon ble Mr. Justice ( Dr. ) Satish Chandra, President And Hon ble Mr. V. Padmanabhan, Member ( Technical ) Shri G G Gupta, Advocate and Shri Mohit Gohlyan, CA for the Appellants Shri M R Sharma, AR for the Respondent ORDER Per: Justice ( Dr. ) Satish Chandra The present appeals are filed by the appellant against the Order-in- Appeal No. 34 (AK) CE/JPR/2017 dated 29.01.2018 and 496-544(SM)CE/JPR/2017 dated 01.12.2017. In both the appeals, the issue is identical and hence, are disposed of by a common order. 2. Brief facts of the case are that the appellants have their factories situated in the State of Rajasth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. vs. CCE, Alwar (Final Order No. 50189 50191/2018 dt. 18.01.2018) where it was observed that: 7. We have heard both sides 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 form of subsidies. Such disbursement happens in the form of VAT 37 B, challan which can be utilized in subsequent periods to discharge VAT liability. The crux of the dispute in the present case is whether such sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ood 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. 10. It is pertinent to reproduce the observations of the Tribunal in the Welspun Corporation Ltd. case 5.1 The Respondent company opted for Remission of Tax Scheme and was thus eligible for the Capital subsidy in the form of remission of Sales Tax subject to the conditions to be fulfilled . The subsidy in the form of remission of sales tax was in fact a percen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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