2019 (9) TMI 66

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..... he assessable value, the VAT amounts paid by the assessee using VAT 37B Challans. Appeal allowed - decided in favor of appellant.
HON'BLE SHRI JUSTICE DILIP GUPTA, PRESIDENT AND HON'BLE SHRI C.L. MAHAR, MEMBER (TECHNICAL) Ms. Ananya Sharma, C.A. - for the appellant. Shri P. Juneja, Authorized Representative (DR) - for the Respondent. ORDER C.L. MAHAR :- The brief facts of the matter are that the appellant is engaged in manufacture of cement falling under Chapter Heading 2523.29 of the first Schedule of the Central Excise Tariff Act, 1985. The Department contended that the appellant had not paid full amount of the central excise duty by not including the element of the sales tax collected by it from the buyers in the assessable value .....

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..... ring both sides and on perusal of record, it appears that the identical issue has already come up before the Tribunal in appellant's own case - Shree Cement Ltd. versus Commissioner of Central Excise, Alwar reported in 2018 -TIOL-748-CESTAT- 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 happen .....

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..... ered 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 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 subsid .....

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