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TMI Blog2018 (7) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... asthan with the objective of facilitating investment in the establishment of new enterprises under the various schemes of Rajasthan Government. The appellants (assessees) were eligible for subsidies as per the various schemes applicable to the assesses and they were required to deposit VAT/CST/SGST at the applicable rate with the Government and in terms of the scheme notified, will be entitled to disbursement of subsidy by the appropriated authorities. The subsidy concern is sanctioned and disbursed in Form 37B and as such challans in the form VAT 37B can be utilised for discharge of the VAT liability of the appellant for subsequent period. The Revenue was of the view that VAT liability discharged by the utilisation of the investment subsid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lined 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 decision of the Apex Court in the case of Super Synotex India Ltd. In the above decision the Apex Court has categorically held that after 01/07/2000, unless the sales tax/VAT is actually paid to the good, no benefit towards excise duty can be given in terms of Section 4(3)(d). However, we note that the Tribunal in the case of Welspun Corporation Ltd. (Supra) has distinguished the decision of the Apex Court in the light of Gujarat VAT Act, 2003. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 assets. The condition of the remission amongst others included to remain in production, employment of certain percentage of persons in assessee unit, and numerous other conditions as brought out in Para 9 of the impugned Order-in-Appeal. 11. By following the decision of the Tribunal in the Welspun Corporation Ltd. case we conclude that there is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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