TMI Blog2018 (9) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... ) for the respondent ORDER Per: Bijay Kumar 1. The present appeal arises out of the Order-in-Appeal No. 93(SM) CE/JPR/2018 dated 1/3/2018 vide which the ld. Commissioner (Appeals) confirmed the demand of ₹ 6,83,765/- on the issue of inclusion of the VAT subsidy in the assessable value for the purpose of discharge of Central Excise duty under Section 4 of the Central Excise Act, 1994. Accordingly, the Revenue proceeded to include such subsidy amount in the value of the goods cleared by the appellant and demanded the differential duty. Being aggrieved, the appellant has preferred the present appeal. 2. The ld. Advocate Shri Vivek Sharma, has brought before us many judgments including the one passed by this Tribunal wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 taken the view that payment of VAT using 37B Challans 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 govt., 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 disti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 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 asset. There was no option to claim exemption 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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