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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (5) TMI AT This

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2017 (5) TMI 177 - AT - Central Excise


  1. 2024 (12) TMI 731 - AT
  2. 2023 (7) TMI 659 - AT
  3. 2023 (6) TMI 449 - AT
  4. 2023 (5) TMI 515 - AT
  5. 2023 (5) TMI 435 - AT
  6. 2023 (3) TMI 1120 - AT
  7. 2022 (6) TMI 1375 - AT
  8. 2020 (3) TMI 198 - AT
  9. 2020 (2) TMI 1056 - AT
  10. 2019 (12) TMI 109 - AT
  11. 2020 (5) TMI 503 - AT
  12. 2019 (9) TMI 66 - AT
  13. 2019 (8) TMI 1544 - AT
  14. 2019 (7) TMI 1677 - AT
  15. 2019 (7) TMI 1862 - AT
  16. 2019 (7) TMI 1680 - AT
  17. 2019 (5) TMI 1226 - AT
  18. 2019 (5) TMI 210 - AT
  19. 2019 (3) TMI 1088 - AT
  20. 2019 (3) TMI 852 - AT
  21. 2019 (4) TMI 748 - AT
  22. 2019 (3) TMI 97 - AT
  23. 2019 (4) TMI 747 - AT
  24. 2019 (2) TMI 471 - AT
  25. 2019 (5) TMI 1615 - AT
  26. 2019 (1) TMI 57 - AT
  27. 2019 (1) TMI 970 - AT
  28. 2018 (12) TMI 1781 - AT
  29. 2019 (1) TMI 366 - AT
  30. 2018 (11) TMI 1753 - AT
  31. 2018 (11) TMI 964 - AT
  32. 2019 (3) TMI 1321 - AT
  33. 2019 (1) TMI 556 - AT
  34. 2018 (10) TMI 757 - AT
  35. 2018 (11) TMI 520 - AT
  36. 2018 (11) TMI 613 - AT
  37. 2018 (9) TMI 487 - AT
  38. 2018 (8) TMI 164 - AT
  39. 2018 (9) TMI 123 - AT
  40. 2018 (8) TMI 1091 - AT
  41. 2018 (9) TMI 1483 - AT
  42. 2018 (9) TMI 1482 - AT
  43. 2018 (8) TMI 309 - AT
  44. 2018 (8) TMI 308 - AT
  45. 2018 (6) TMI 1349 - AT
  46. 2018 (7) TMI 909 - AT
  47. 2018 (6) TMI 871 - AT
  48. 2018 (6) TMI 870 - AT
  49. 2018 (7) TMI 6 - AT
  50. 2018 (7) TMI 5 - AT
  51. 2018 (5) TMI 1409 - AT
  52. 2018 (5) TMI 2058 - AT
  53. 2018 (5) TMI 1662 - AT
  54. 2018 (5) TMI 816 - AT
  55. 2018 (4) TMI 1787 - AT
  56. 2018 (4) TMI 1552 - AT
  57. 2018 (4) TMI 1161 - AT
  58. 2018 (4) TMI 288 - AT
  59. 2018 (4) TMI 1160 - AT
  60. 2018 (4) TMI 220 - AT
  61. 2018 (3) TMI 177 - AT
  62. 2018 (3) TMI 16 - AT
  63. 2018 (3) TMI 1229 - AT
  64. 2018 (2) TMI 1240 - AT
  65. 2018 (3) TMI 688 - AT
  66. 2018 (1) TMI 915 - AT
  67. 2018 (1) TMI 704 - AT
  68. 2017 (6) TMI 419 - AT
Issues Involved:
1. Whether the sales tax retained by the respondent under the Incentive Scheme 2001 should be included in the assessable value for the levy of Central Excise duty.
2. Distinction between "remission" and "exemption" of sales tax under the Gujarat VAT Act, 2003.
3. Applicability of the Supreme Court's judgment in the case of M/s Super Synotex (India) Ltd.
4. Whether the remission of sales tax as capital subsidy should be considered part of the transaction value.

Detailed Analysis:

1. Inclusion of Sales Tax Retained Under Incentive Scheme in Assessable Value:
The Revenue contended that the sales tax retained by the respondent as an incentive under the Incentive Scheme 2001 should be added to the assessable value for the levy of Central Excise duty. This was based on Rule 6 of the Central Excise Valuation Rules, 2000, and Section 4 (1) and 4 (3) (a) (d) of the Central Excise Act, 1944. The respondent argued that the sales tax was payable at the time of clearance of goods and thus, should not be part of the assessable value. The adjudicating authority initially rejected the refund claim, stating that the sales tax collected and retained was not actually payable and thus should be included in the assessable value. However, the Commissioner (Appeals) allowed the respondent's appeal, leading to the Revenue's current appeal.

2. Distinction Between "Remission" and "Exemption" of Sales Tax:
The respondent emphasized the difference between "remission" and "exemption" of sales tax. "Remission" implies that the sales tax is payable at the time of clearance but is later remitted, whereas "exemption" means the tax is not payable at all. The Gujarat VAT Act, 2003, under Section 41 and Rule 18B, provides for remission, not exemption, meaning the sales tax was actually payable and thus, should not be included in the assessable value. The Tribunal agreed, stating that the remission of sales tax under the Incentive Scheme 2001 was a form of capital subsidy directly related to capital investment.

3. Applicability of Supreme Court's Judgment in M/s Super Synotex (India) Ltd:
The Revenue relied on the Supreme Court's judgment in M/s Super Synotex (India) Ltd., which held that sales tax not actually paid or payable should be included in the transaction value. However, the Tribunal distinguished this case, noting that the Super Synotex case dealt with an exemption scheme, whereas the present case involved remission. The Tribunal noted that in the Super Synotex case, the sales tax was neither paid nor payable, whereas, in the current case, the sales tax was payable and later remitted as an incentive.

4. Remission of Sales Tax as Capital Subsidy:
The Tribunal found that the remission of sales tax under the Incentive Scheme 2001 was a form of capital subsidy for investments in the Kutch district. The sales tax was actually payable at the time of clearance and was later remitted as an incentive. This remission was considered a capital subsidy and not an additional consideration for the sale of goods. The Tribunal also noted that the Gujarat VAT Act, 2003, under Section 11 (7A), deems remitted tax as statutorily paid, further supporting the respondent's position.

Conclusion:
The Tribunal upheld the Commissioner (Appeals)'s order, concluding that the sales tax retained under the Incentive Scheme 2001 should not be included in the assessable value for the levy of Central Excise duty. The Revenue's appeals were dismissed, and the Tribunal noted that the remission of sales tax as a capital subsidy did not form part of the transaction value. The Tribunal also distinguished the case from the Supreme Court's judgment in M/s Super Synotex (India) Ltd., emphasizing the difference between remission and exemption of sales tax.

 

 

 

 

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