2018 (1) TMI 1767 - SCH - Central Excise

Sales tax/VAT refunds as incentives in excise valuation u/s4(3)(d), 'actually paid' dispute; assessee upheld, notice issued

The dominant issue concerned valuation under s. 4(3)(d) of the Central Excise Act, 1944 in a refund claim, specifically whether sales tax/VAT could be ... Valuation - claim of Refund of excess duty paid - recovery of sales tax amount/ VAT amount and to retain with themselves as an incentive - it was held by CESTAT that 'Once the Sales Tax department has assessed the Sales Tax as paid, the Central Excise department cannot contend that since the State Government has remitted the amount back to the appellants as incentive, Sales Tax was not paid by them. Hence, we find that once the Sales Tax department assessed the Sales Tax as paid, the condition of Section 4(3)(d) of the Central Excise Act, 1944 stands fulfilled.' HELD THAT:- Issue notice. The proceeding records that counsel for the appellant was heard and the Court 'perused the relevant material.' The Court granted 'Exemption from filing certified copy of the impugned order,' thereby dispensing with the requirement to file a certified copy at this stage. The Court also ordered 'Delay condoned,' allowing the matter to proceed notwithstanding late filing. Finally, the Court directed: 'Issue notice,' indicating that notice is to be served on the respondent(s) and the case will move forward for further consideration.