TMI Blog2018 (6) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... r (Judicial) Ms. Surabhi Sinha, Advocate for the appellant. Shri M.R. Sharma, Authorized Representative (DR) for the Respondent. Per. C.L. Mahar :- The appellant is engaged in manufacture of PP bags and it has been alleged that they have not paid central excise duty on the additional consideration of sales tax collected from the buyers and retained by them to the extent of sales tax liability, actually not paid to the State Exchequer during the period April 2015 to June 2016 and thereby appeared to have short paid central excise duty to the tune of ₹ 1,60,229/- by contravening the provision of Section 4 of Central Excise Act, 1944. The appellant is before this Tribunal against the above-mentioned order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns 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 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 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 . 4. Since the facts of the present appeal are same as of above, we follow the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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