2018 (2) TMI 9

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.... are that the appellant is engaged in the manufacture of CI Casting and Auto Parts. The appellant cleared the final products after paying Central Excise duty and also discharge VAT/CST on the direct sales. The appellant received the incentive from the Madhya Pradesh Government with a view to promote the investment. The appellant holds a valid entitlement certificate under the MPIIPAS and availed the investment subsidy upto the maximum of eligible fixed investment, paid annually on the basis of 50% of the VAT/CST paid. The subsidy was adjusted as the advance payment towards the VAT /CST. The department is of the view that the amount of the subsidy received from the M.P. Government is includible in the assessable value of the goods cleared du....

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.... payment of VAT using 37B Challans cannot be considered as actual payment of VAT. 8. Both sides have referred to the decision of the Apex Court in the case of Super Synotex India Ltd. In the above decision the Apex Court has categorically held that after 01/07/2000, unless the sales tax/VAT is actually paid to the good, no benefit towards excise duty can be given in terms of Section 4(3)(d). However, we note that the Tribunal in the case of Welspun Corporation Ltd. (Supra) has distinguished the decision of the Apex Court in the light of Gujarat VAT Act, 2003. In the Welspun Corporation Ltd. case, the assesse had opted for remission of tax scheme under which a portion of the VAT paid was remitted back to the assessee. The Tribunal h....