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TMI Blog2018 (4) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans. Appeal allowed - decided in favor of appellant. - Appeal No. E/51979/2017 - Final Order No.51198/2018 - Dated:- 5-4-2018 - Satish Chandra, President And V. Padmanabhan, Member (Technical) For the Appellant : Shri Sanjay Grover, Advocate For the Respondent : Shri R. K. Mishra, DR ORDER Per V. Padmanabhan The present appeal is against the Order-in-Original No.26/2017 dated 28.09.2017. The appellant is a manufacturer of cement and clinker falling under chapter heading 2523 of the Central Excise Tariff. The Central Excise duty on the cement sold by the appellant was mostly discharged on MRP basis under Section 4A and partly by payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision, present appeal has been filed. 2. With the above background, we heard Shri Sanjay Grover, ld Advocate to the appellant and Shri R.K. Mishra, ld DR representing the Revenue 3. The submissions made by the ld Advocate are summarized below: (i) The SCN relied upon the decision of the Supreme Court in the case of Commissioner of Central Excise, Jaipur-II Vs Super Synotex (India) Ltd.,2014 (301) ELT 273 (S.C.) The Hon ble Supreme Court in the case of Super Synotex was examining the Incentive Scheme of the Rajasthan Government. Under that scheme, the assessee could collect 100% VAT from the customers, and was allowed to retain 75% as incentive. Only 25% was to be deposited with State VAT authorities. The Hon ble Supreme Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t applicable to the facts. In that case, the assessee would collect the full amount of VAT from the customers. Under the incentive scheme of the Government, only 25% of VAT would be deposited, and remaining 75% VAT was retained by the assessee. In the Appellant s case, the entire amount of VAT collected is deposited with State authorities. Transaction Value, as defined under Section 4(3)(d), ..does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods . In this case, the Sales Tax (VAT) is actually paid by the Appellant. Applying the aforesaid definition, it cannot form part of the Transaction Value, and must be excluded from Transaction Value. (iii) They relied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord that VAT charged and collected by the appellant stands immediately credited to the State Government. Subsequently, on the basis of their application, the financial assistance is sanctioned by MP Trade and Investment Facilitation Corporation Limited and paid in favour of Commercial Tax Office. Such amount is to be considered as advanced tax deposited by the assesee and the balance is required to be paid by the assessee. 8. We find that a similar issue has come up before the Tribunal in the case of Shree Cement Ltd V/s Commissioner decided by the Tribunal vide Final Order No. 50189-50191/2018 dated 18/01/2018 in which the Tribunal observed as follows:- 7. We have heard both sides at length and perused the appeal record. As out li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arat VAT Act, 2003. In the Welspun Corporation Ltd. case, the assesse had opted for remission of tax scheme under which a portion of the VAT paid was remitted back to the assessee. The Tribunal held that such subsidy amounts are not required to the included in the transaction value. 9. In the present case we know that for the initial period the assessees are required to remit the VAT recovered by them at the time of sale of the goods manufactured. A part of such VAT is given back to them in the form of subsidy in Challan 37 B. Such Challans are as good as cash but can be used only for payment of VAT in the subsequent period. In terms of the scheme of the Government of Rajasthan payment of VAT using such Challan are considered legal pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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