2018 (6) TMI 870

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y is situated in the State of Rajasthan and they have been availing the benefit of "The Rajasthan Investment Promotion Scheme, 2003 [the RIPS]" under this scheme the appellant got credit of certain subsidy on account of wages and loans subsidy which was credited to their account with VAT 37B chatters, which were used for discharge of sales tax liability. It has been a case of the Department that by availing the benefits of RIPS certain amount of the sales tax collected by the appellant from their buyers has been retained by them and thereby they have not paid central excise duty on the sales tax collected from the buyers and retained by them and thereby the appellant have contravened the provisions of Section 4 of Central Excise Act, 1944 a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d both the sides. 4. As mentioned by the learned Advocate, the issue in question is already settled as this Tribunal has already held in the case of M/s Shree Cement Ltd. vs. CCE, Alwar - 2018 - TIOL - 748 - CESTAT - DEL., wherein it has held that :- "7. We have heard both sides at length and perused the appeal record. As out lined above, the appellants are covered by the Investment Promotion Schemes of the Rajasthan Government. In terms of the various schemes of the Rajasthan Government, the appellants are required to discharge their VAT liability by making payment of the same. Out of such VAT credited to the Government, a certain portion is disbursed back to them in the form of subsidies. Such disbursement happens in the form of VAT....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....time of sale of the goods manufactured. A part of such VAT is given back to them in the form of subsidy in Challan 37 B. Such Challans are as good as cash but can be used only for payment of VAT in the subsequent period. In terms of the scheme of the Government of Rajasthan payment of VAT using such Challan are considered legal payments of tax. In view of the above, Revenue is not correct in taking the view that VAT liability discharged by utilizing such subsidy challans cannot be taken as VAT actually paid. 10. It is pertinent to reproduce the observations of the Tribunal in the Welspun Corporation Ltd. case "5.1 The Respondent company opted for "Remission of Tax Scheme" and was thus eligible for the Capital subsidy in the form....