Subsidy received by the appellant under Rajasthan Investment ...

Subsidy received under Rajasthan Investment Promotion Scheme 2010 not included in assessable value of goods cleared in 2016-17.

Case Laws     Central Excise

July 31, 2024

Subsidy received by the appellant under Rajasthan Investment Promotion Scheme 2010 from the State Government cannot be included in assessable value of goods cleared during 1.4.2016 to 31.03.2017 u/s 4(3)(d) of Central Excise Act. Following latest decision in M/S HARIT POLYTECH PVT. LTD. VERSUS COMMISSIONER, CENTRAL EXCISE & CGST- JAIPUR I and other cases, where subsidy does not reduce sales tax required to be paid by assessee, subsidy amount cannot be included in transaction value for central excise duty levy. VAT amount paid by assessee using VAT 37B challans construed as actual VAT payment, not included in transaction value u/s 4(3)(d). Impugned order set aside. Appeal allowed.

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