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TMI Blog2018 (3) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... and collecting VAT at the applicable rate from their buyers and the same were not included in transaction value as per Section 4 (3) (d) of the Central Excise Act for the purpose of charging and payment of Excise duty. The appellant was getting refund of 75 per cent of the VAT paid by them under the M.P. Industrial Permanent Assistance Scheme, 2010 and the cheque of such amount sanctioned under the Scheme was issued in favour of Commercial Tax Office and was treated as advance tax deposited by the appellant. Department was of the view that deduction of VAT from transaction value is admissible only for amount of tax actually paid or payable. In the instant case the State Government deposited the subsidy amounts admissible under the Scheme to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard he relied on CCE V/s Welspun Corporation Ltd. 2017 (358) ELT 630 (Tri-Mumbai) and Final Order No. 50189-50191/2018 dated 18/01/2018 in the case of Shree Cement V/s Commissioner. 5. The Ld. DR justified the impugned order. He argued that the appellant has collected VAT at the full rate but at the time of making payment to the State Government, only the balance amount of tax is remitted after taking into account the subsidy already deposited as advance tax. He argued that in the light of the decision of the Apex Court in the case of Super Synotech, only the actual amount on VAT paid can be allowed as deduction from Transaction Value. 6. Heard both sides and perused the record. 7. The dispute is with reference to the subsidy receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 considered as actual payment of VAT. 8. Both sides have referred to the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The quantum of remission was based upon the investment made in the fixed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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