2018 (8) TMI 1091

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....in Neemrana where they are entitled to VAT subsidy under Rajasthan Investment Promotion Policy-2003. The Department noticed that they have not paid duty on value including the investment subsidy against Entitlement Certificate sanctioned under the above policy. Accordingly, duty demands were confirmed against the appellant by the original authority. In addition, he also levied penalty equal to 50% of such duty. The Department challenged the order of the original authority before the Commissioner (Appeals) contending that the penalty leviable should be equal to the duty confirmed and the Commissioner (Appeals) vide the impugned order allowed the appeal. 3. Sh. G. G. Gupta, ld. Advocate submits that the issue of duty liability on the VAT s....

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....e with the Government and in terms of the scheme notified, will be entitled to disbursement of subsidy by the appropriated authorities. The subsidy concern is sanctioned and disbursed in Form 37B and as such challans in the form VAT 37B can be utilised for discharge of the VAT liability of the appellant for subsequent period. The Revenue was of the view that VAT liability discharged by the utilisation of the investment subsidy granted in Form 37B actually paid, for the purpose of Section 4 of the Central Excise Act. Accordingly, the Revenue proceeded to include such subsidy amounts in the value of the goods cleared by the appellants and demanded the difference of the duty. Being aggrieved, the appellants have filed the present appeals. 2....

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....he 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 held that such subsidy amounts are not required to the included in the transaction value. 9. In the present case we....