TMI Blog2018 (12) TMI 1781X X X X Extracts X X X X X X X X Extracts X X X X ..... ted:- 13-12-2018 - Hon ble Shri Anil Choudhary, Member (Judicial) And Hon ble Shri C.L. Mahar, Member (Technical) Shri Jatin Singhal, Advocate for the appellant. Shri R.K. Mishra, Authorized Representative (DR) for the Respondent. ORDER C.L. MAHAR :- The brief facts of the case are that the appellant are engaged in the manufacture of transformers falling under Chapter Heading 8504 of 1st Schedule to the Central Excise Tariff Act, 1985. It has been the contention of the department that the appellant has received investment subsidy and employment generation subsidy against Entitlement Certificate No. 1/1 dated 31 October 2013 sanctioned under the Rajasthan Investment Promotion Policy 2010. It has been the stand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 taken the view that payment of VAT using 37B Challans cannot be cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 asset. There was no option to claim exemption from payment of sales tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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