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TMI Blog2022 (4) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... llant manufactured and cleared excisable goods, the value of which are assessed under Section 4(1)(a) of the Central Excise Act, 1944. The Appellant has availed VAT remission under Assam Industries (Tax Exemption) Order, 2005 w.e.f. March 2011. As per terms of the above remission scheme the Appellant charged and collected 100% of the VAT payable from their buyers, retained 99% of the same and paid only 1% to the State Government. Department alleged that the as per Section 4(3)(d) of the Central Excise Act, 1944, the aforesaid amount of 99% of the VAT collected from buyers, which was not paid to the State Government is not excludible and should have formed part of Assessable Value for the purpose of payment of Central Excise duty. Extended p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No.20/2007-CE dated 25.04.2007 (as amended). That the Appellant had discharged the Assam VAT liability during the relevant period from March 2011 to March 2014 and October 2014 by utilizing the VAT remission allowed as subsidy by the Assam Government, pursuant to Assam Industries (Tax Exemption) Scheme, 2009. Show Cause Notices were issued invoking the extended period of limitation and demanding excise duty along with Cess on the amount Assam VAT adjusted by the Appellant against the VAT remission granted under Assam Industries (Tax Exemption) Scheme, 2009 on the contention that the Assam VAT collected by the Appellant was not paid to the Government exchequer and should have formed part of the assessable value of the goods removed durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission in the assessable value because only 1% of the Sales Tax collected from the buyer was deposited in the State Govt's exchequer and remaining 99% of the Sales Tax, so collected was retained by the Appellant and as such Assam VAT was neither actually paid nor actually payable. Hence the present Appeals before the Tribunal. 3. Shri R.S. Bajaj, Ld. Chartered Accountant submitted that the dispute is covered on merits by judicial pronouncement in the case of CCE Vs. Super Synotex (India) Ltd. & Others as reported in [2014 (301) ELT 273 (SC)], however, the entire demand is abysmally barred by limitation because the extended period of limitation as invoked is not at all sustainable in view of the conflicting judgements on the issue of differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 100% of the VAT payable from their buyers, retained 99% of the same and paid only 1% to the State Government. Department alleged that the as per Section 4(3)(d) of the Central Excise Act, 1944, the aforesaid amount of 99% of the VAT collected from buyers, which was not paid to the State Government is not excludible and should have formed part of Assessable Value for the purpose of payment of Central Excise duty. 7. The Appellant contested the allegation. The Adjudicating authority confirmed the demand as well as invoked extended period of limitation. The Appellant filed Appeals before the Ld.Commissioner(Appeals) who rejected the Appeals. Now the Appellant has filed the present Appeals against the said Orders-in-Appeal. 8. The Ld.Chartere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that under Circular dated 30.06.2000 CBEC had clarified that such amount retained by the assessee is not required to be added to the assessable value. This view was negated by Apex court in the above said orders. Since there was no clarity on the issue, the assessee cannot be said to be at fault, hence extended period would not be available to raise the demand." 9. After considering the said Circular as well as the decision of the Hon'ble Supreme Court, the Hon'ble Gauhati High Court in Central Excise Appeal No.6-14/2018 has upheld the view that the demand is required to be restricted to the normal time limit. Accordingly, he submits that the impugned order may be modified to restrict the demand to the normal time limit. 10. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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