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TMI Blog2018 (7) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... Padmanabhan, Member (Technical) And Ms. Rachna Gupta, Member (Judicial) Sh. B. L. Yadav, Advocate for the appellant Sh. U. Sengraj, AR for the Respondent ORDER Per: V. Padmanabhan: The present appeal has been filed against the Order-in-Appeal 34(SM)CE/JPR/2018 dated 02.02.2018. 2. The brief facts of the case are that the appellant has established their factory in the State of Rajasthan and were operating under Rajasthan Investment Promotion Scheme which was notified by the Government of Rajasthan 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 view that payment of VAT using 37B Challa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vations 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 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 exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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