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TMI Blog2025 (4) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... nt established a new industrial unit in Tezpur, Assam for manufacturing corrugated packaging materials. A Show Cause Notice dated 24.12.2014 was issued, alleging short payment of Central Excise duty due to the exclusion of VAT retention from the assessable value for the period from December, 2009 to March, 2014. The matter was adjudicated and the demand of duty was confirmed alongwith interest and penalty was also imposed. 3. Against the said order, the appellant is before us. 4. The Ld. Consultant appearing on behalf of the appellant submits that the retained VAT granted as an incentive under Assam Industries (Tax Remission) Scheme, 2005 which was considered by the Adjudicating Authority as the part of assessable value under Section 4 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eas in the case of remission, tax is actually payable and paid which is allowed to be remitted by way of retention or by way of refund. In the instant case, as already discussed above, it is not that Sales Tax was not only payable but in fact it stood actually paid, as the remission was nothing but the incentive or capital subsidy which the State Government granted with respect to the investment made by the appellants in the earthquake ravaged region of Kutch of State of Gujarat. Therefore, he prayed that impugned order is to be set aside. 7. Heard the parties. Considered the submissions. 8. We find that the Show Cause Notice alleged that the appellant has retained that 99% of the VAT collected from the buyers and the same is to be includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent submits that under the Incentive Scheme they were eligible for incentive on account of fixed Capital Investments. The State Government instead of collecting the Sales Tax payable and thereafter separately granting the same in the form of incentive in exercise of powers vested with it under the Gujarat VAT Act, 2003 has given effect to the said Incentive scheme by granting remission of the Sales Tax actually payable and adjusting it against the incentive. In their case not only Sales Tax was actually payable but in fact it stood actually paid, as the remission was nothing but adjustment of the Sales Tax paid by them against the incentive which the State Government granted with respect to the fixed capital investment made by it in the St ..... X X X X Extracts X X X X X X X X Extracts X X X X
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