Tribunal emphasizes uniformity in VAT inclusion for Excise duty, cites legal principles

The Tribunal remanded all appeals for fresh adjudication, emphasizing the need for consistency and uniformity in decision-making regarding whether VAT collected and retained by appellants should be included in the assessable value for Central Excise duty. The decision highlighted the importance of following legal principles and Supreme Court rulings, considering the unique industrial policies in the northeast region.

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Issues Involved:
Determining whether VAT collected and retained by appellants should be added to assessable value for Central Excise duty.

Detailed Analysis:

1. Identical Issue in Multiple Appeals:
- All appeals filed against different Orders-in-Original/Orders-in-Appeal for various periods.
- Issue of including VAT collected by appellants in assessable value for Central Excise duty is common.
- Appeals disposed of collectively for convenience.

2. Factual Background:
- Appellants established factories in northeast region under Notification No.20/2007.
- Enjoyed subsidies, VAT benefits, allowed to collect VAT from customers.
- Dispute: Whether 99% VAT retained by appellants should be added to assessable value for Central Excise duty.

3. Contention of Appellants:
- State policy in northeast different from other regions.
- VAT collected can be retained as per state policy.
- Cited cases supporting their stance.
- Claimed Circular No.983/7/14 applicable retrospectively.

4. Department's Stand:
- VAT retained by appellants should be part of goods' price.
- Relied on Supreme Court cases to support their argument.
- Opposed claim of revenue neutrality.

5. Decision and Reasoning:
- Promoting industrial development in northeast through various schemes.
- Lack of uniformity in Commissioners' decisions.
- Orders passed without considering Supreme Court rulings.
- Emphasized need for consistency in decision-making.
- Set aside all impugned orders and remanded for fresh adjudication with reasonable opportunity to appellants.
- All appeals allowed by way of remand for uniformity and fairness in decision-making.

This judgment addresses the issue of whether VAT collected and retained by appellants should be included in the assessable value for Central Excise duty. The Tribunal emphasized the need for consistency and uniformity in decision-making while remanding all appeals for fresh adjudication. The decision considered the unique industrial policies in the northeast region and highlighted the importance of following legal principles and Supreme Court rulings in determining such issues.

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