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TMI Blog2018 (4) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Appeal No. 50366 of 2018 - Final Order No. 51252/ 2018 - Dated:- 5-4-2018 - Hon ble Mr. Justice (Dr.) Satish Chandra, President And Hon ble Mr. V. Padmanabhan, Member (Technical) Sh. Vivek Sharma, Advocate for the appellant Sh. M. R. Sharma, AR for the respondent ORDER Per: Justice (Dr.) Satish Chandra: The present appeal is filed against the Order-in-Original No. JOD-EXCUS-000-COM-0015-17-18 dated 22.09.2017 passed by the Commissioner, Central Goods Service Tax, Jodhpur. 2. Brief facts of the case are that the appellants have their factories situated in the State of Rajasthan and were operating under Rajasthan Investment Promotion Scheme which was notified by Government of Rajasthan with the objective of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 748-CESTA- Del where it was observed that- 7. We have heard both sides at length and perused the appeal record. As out lined above, the appellants are covered by the Investment Promotion Schemes of the Rajasthan Government. In terms of the various schemes of the Rajasthan Government, the appellants are required to 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 v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequent period. In terms of the scheme of the Government of Rajasthan payment of VAT using such Challan are considered legal payments of tax. In view of the above, Revenue is not correct in taking the view that VAT liability discharged by utilizing such subsidy challans cannot be taken as VAT actually paid. 10. It is pertinent 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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