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TMI Blog2010 (2) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;BLE BHARATI SAPRU, J. 1. Heard Sri Bharat Ji Agrawal assisted by Sri Piyush Agrawal learned counsel for the assessee and Sri B.K. Pandey learned standing counsel for the department. 2. This revision has been filed by the assessee against the order of the tribunal dated 24.1.2002. The questions of law referred to are as under: "(i) Whether in view of the definition of 'purchase pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Act the set off of Central Excise Duty has been given as Modvat? (iii) Whether in view of the decision of Hon'ble Apex Court any subsidy or incentive given to a manufacturer on the sale of the manufactured goods cannot legally reduce the purchase price of the capital goods which are essential for establishing the factory; hence the Trade Tax Tribunal was not justified in not includi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority?" 3. Learned counsel for the assessee has argued that disallowance made by the department in respect of the purchases made of the plant and machinery by the Neutral Citation No. - 2010:AHC:20007 assessee are bad and not justified and they should have been allowed under fixed capital investment. 4. He has argued that the reasons as adopted by the department for disallowing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee in the purchase of plant and machinery and that would remain the same and it would qualify as 'fixed capital investment' as defined in Explanation IV to section 4A of the Act. 7. I have heard learned counsel for the parties and also perused the order. The order simply states that because Modvat has been given, the price paid by the assessee would not conform the part of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit was being set up, the Ghaziabad Development Authority regulates setting up of car parking. This was the investment which was necessary under a statutory obligation. Thus this question is also answered in favour of the assessee and against the department. 10. The revision is, thus allowed. The order of the tribunal dated 24.1.2002 is modified to this extent and rest will be as it is. No cost ..... X X X X Extracts X X X X X X X X Extracts X X X X
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