2019 (4) TMI 747

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....aving their factories in the state of Rajasthan and were operating under Rajasthan Investment Promotion Scheme, which was notified by the State Government with the objective of facilitating investment in the establishment of new enterprises. Under the various schemes of the Rajasthan Government, the appellant (assessees) were eligible for subsidies. As per the sales tax provisions applicable to the assessees, they were required to deposit VAT/CST/SGST at the applicable rate with the Government. The subsidy is sanctioned and disbursed by vouchers in form 37B and such vouchers in the form VAT 37B can be utilized for discharge of the VAT liability of the appellant, for subsequent periods. Revenue was of the view that the VAT liability discharg....

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....ed 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 37 B, challan which can be utilized in subsequent periods to discharge VAT liability. The crux of the dispute in the present case is whether such subsidy amounts are required to be included in the assessable value of the goods manufactured by the appellants, in terms of Section 4 of the Central Excise A....