2018 (3) TMI 688

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....e appellant is engaged in the manufacture of Cement and clinker falling under Chapter sub heading 2523 which attracts the excise duty. The appellant's factory is located in the State of Rajasthan where the appellant was availing the interest on subsidy granted under "The Rajasthan Investment Promotion Scheme, 2003" notified by the State of Rajasthan with a view to promote investment. The appellant holds a valid entitlement certificate under the scheme and availed the wage subsidy @ 25% of the wage payment to the workers; and interest subsidy @ 5% of interest paid on term loan, restricted to the maximum of 75% of VAT/CST paid. The Department is of the view that the amount of interest was received from State Government Scheme, 2003 is includi....

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....ise duty. Revenue has taken the view that 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 ba....