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TMI Blog2018 (3) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral excise duty under Chapter 85 of the Central Excise Tariff Act, 1985. The appellant cleared the final products after paying the Central Excise duty and also discharged VAT/CST under MPIIPAS. 3. With this background, we heard Shri Dhruv Tiwari and Shri S K Bansal, learned representatives of the parties and gone through the material available on record. 4. After hearing both the sides and on perusal of the material available on record, we find that the appellant cleared the final products after paying Central Excise duty and also discharge VAT/CST on the direct sales. The appellant received the incentive from the Madhya Pradesh Government with a view to promote the investment. The appellant holds a valid entitlement certificate under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o discharge their VAT liability by making payment of the 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 vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to reproduce the observations of the Tribunal in 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 incen sstive 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 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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