9911796707
TMI Blog2024 (5) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... TIRUPATI BALAJI FURNACES PVT. LTD., M/S. TRANS ACNR SOLUTIONS PVT. LTD., M/S. FRYSTAL PET PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS CGST- ALWAR [ 2023 (3) TMI 1120 - CESTAT NEW DELHI] and it was observed that The subsidy amount, therefore, cannot be included in the transaction value for the purpose of levy of central excise duty under section 4 of the Excise Act. The order dated 10.05.2019 passed by the Commissioner cannot be sustained and is set aside - Appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... the customers as sales tax to the extent of the amount adjusted towards their subsequent sales tax liability through 37B challans (mode of deposit). ***** 35. In view of the above and following the judicial discipline, I hold that the appellants are liable to pay Central Excise Duty on the amount received as said to be subsidy and equal amount of sales tax have been collected from the buyers but retained by them." 4. The issue was examined by the Tribunal in M/s. Harit Polytech Pvt. Ltd. vs. Commissioner, Central Excise and CGST-Jaipur I [2023-TIOL-235-CESTAT-Del] and it was observed: "3. The appellant had been granted subsidy to the extent of Rs. 26,98,304/- during the relevant period by the State of Rajasthan in the form of Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id in cash through VAT 37A challan. 8. The Department believes that this amount of Rs. 1000/- retained by the appellant from the amount of sales tax collected by the appellant from the customers should be included in the transaction value since the definition of transaction value in section 4(3)(d) of the Excise Act excludes only the amount of sales tax actually paid or payable on such goods. According to the Department, the appellant has deposited only an amount of Rs. 1500/- collected towards sales tax from the customers since the balance amount was adjusted through the subsidy amount of Rs. 1000/-. ***** 20. Under the promotion policy involved in these appeals, the subsidy does not reduce the sales tax that is required to be paid b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Rs. 1500/- towards sales tax in cash through VAT 37A Challan, then whether this 1000/- can be said to be an additional consideration. The decision of the Supreme Court in Super Synotex India would not be applicable to the facts of the present case as that was a case where 25% of the amount collected as sales tax from the customers was paid by the assessee and the remaining 75% of the amount was retained by the assessee, which amount was treated to be the price of the goods. In the promotion policy involved in the present case, the subsidy does not reduce the sales tax that is required to be paid by the assessee as the entire amount of sales tax collected by the assessee from the customer is paid. The subsidy amount, therefore, cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
