9911796707
TMI Blog2025 (3) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of fertiliser for which subsidy is provided by the Government, Excise Duty will be chargeable on the MRP and not on the subsidy component provided by the Government. It is also noted that this clarification was issued in view of department issuing SCNs relying on the judgment of Hon'ble Supreme Court in the case of CCE, Mumbai Vs Fiat India Pvt. Ltd. [2012 (8) TMI 791 - SUPREME COURT]. In the SCN, the Adjudicating Authority also relied on the same judgment for drawing her conclusion that subsidy is in the nature of additional consideration, therefore, liable to Central Excise Duty. Therefore, it is obvious that the Government has clarified the leviability of Central Excise Duty in respect of subsidy provided by the Government to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djudicating Authority has confirmed the demand raised in terms of SCN dt.29.10.2013. 2. The issue, in brief, is that the appellants were receiving certain fertiliser subsidy from the Ministry of Chemicals and Fertilisers, Government of India. It was noticed by the department that they were not discharging Central Excise Duty on the said amount of subsidy received from the Government. The department relied on Rule 6 of Central Excise (Determination of Price of Excisable Goods) Rules, 2000, as also on Rule 11 of the Valuation Rules to come to the conclusion that the price includes in addition to the amount charged as price, any amount the buyer is liable to pay or on behalf of the assessee and holding that it is the Government of India who o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c) Coramandel International Ltd Vs CCE, C & ST, Visakhapatnam-I [2015 (319) ELT 526 (Tri-Bang)] 5. He further argues that the Circular No. 983/7/2014-CX dt.10.07.2014 makes abundantly clear that subsidy received from the Government by the fertiliser company cannot be subjected to Excise Duty and cannot be loaded to transaction value as additional consideration. He further submits that they are receiving subsidy both on account of product as well as for the freight. However, the sale is only as per the administered price/regulated price fixed by the Government from time to time. 6. On the other hand, learned AR for the department is mainly contesting that in terms of section 4, where price is not the sole consideration, the transaction v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y explained by the Board vide Circular No.983/7/2014-CX, wherein, inter alia, it was clarified that in respect of fertiliser for which subsidy is provided by the Government, Excise Duty will be chargeable on the MRP and not on the subsidy component provided by the Government. We also note that this clarification was issued in view of department issuing SCNs relying on the judgment of Hon'ble Supreme Court in the case of CCE, Mumbai Vs Fiat India Pvt Ltd (supra). We also note that in the SCN, the Adjudicating Authority also relied on the same judgment for drawing her conclusion that subsidy is in the nature of additional consideration, therefore, liable to Central Excise Duty. Therefore, it is obvious that the Government has clarified the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aying certain extra amount in addition to the regulated price being charged by the ONGC and this extra amount was coming from the oil pool account regulated by the oil coordination committee. Therefore, the facts are quite different and the amount received by ONGC was not in the nature of subsidy as in the case of present appeal where it is direct subsidy from the Ministry of Chemicals and Fertilisers, Government of India. Even a plain reading of the statutory provisions of section 4 would indicate that when price is not the sole consideration, recourse can be taken to Valuation Rules i.e., Rule 6, to add the additional consideration. However, this additional consideration must flow from the buyer to the seller either directly or indirectly ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
