TMI Blog2018 (5) TMI 1662X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessable value, the VAT amounts paid by the assessee using VAT 37B Challans - appeal allowed - decided in favor of appellant. - E/50813 - 50815/2018-DB - FINAL ORDER No._51741-51743/2018 - Dated:- 9-5-2018 - Mr. V. Padmanabhan, Member (Technical) and Mr. Ajay Sharma, Member (Judicial) Present Ms Priyanka Goel, Advocate for the appellant Present Shri S.K. Bansal, DR for the respondent ORDER Per: V. Padmanabhan These three appeals have been filed against different Orders-in-Appeal No. 464/2017-18 dated 29/12/2017, 462/2017-18 dated 29/12/2017 and 463/2017-18 dated 29/12/2017. 2. The brief facts of the case are that the appellants have factories situated in the state of Madhya Pradesh, for the purpose of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arge 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 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 3 Excise Appeal No.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id. 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 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 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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