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TMI Blog2018 (8) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... l No. 51465 of 2018 - A/52554/2018-EX[DB] - Dated:- 16-7-2018 - Mr. V. Padmanabhan, Member (Technical) And Ms. Rachna Gupta, Member (Judicial) Sh. G. G. Gupta, Advocate for the appellant Ms. Tamana Alam, AR for the Respondent ORDER Per: V. Padmanabhan: The present appeal is against the Order-in-Appeal No. 87/(AK)CE/JPR/2017 dated 14.03.2017 passed by Commissioner (Appeals), Central Excise CGST, Jaipur. 2. Brief facts of the case are that the appellant is a manufacturer of automobile components and is situated in Neemrana where they are entitled to VAT subsidy under Rajasthan Investment Promotion Policy-2003. The Department noticed that they have not paid duty on value including the investment subsidy against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 1. The brief facts of the case are that the appellants have established their factories 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute 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 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission 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 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 br ..... X X X X Extracts X X X X X X X X Extracts X X X X
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