2019 (5) TMI 1615

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....None Present for the Respondent: Mr. S.K. Bansal, D.R. ORDER PER: RACHNA GUPTA The present appeal has been preferred against the Order-in-Appeal No.92 dated 28.03.2018 vide which the demand of Central Excise Duty on the VAT subsidy amounts received by the appellants from Rajasthan Government has been upheld alongwith the interest and the penalty. It has been brought to the notice that ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....allans. It is also an apparently admitted fact that the appellant was paying total VAT charged at applicable rates on sale of goods to the State Exchequer and was filing the VAT returns. The VAT 37B Challans, the appellant was utilising to discharge the output VAT liability for the subsequent period. The Department has treated the said discharge of VAT liability vide the said VAT Challans as reten....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s, stand decided in favour of the appellants. Once the demands for differential duty have been set aside, there is no justification for penalties which are also to be set aside." 4. Also while deciding the appeal No.E/52168/2018 dated 05.09.2018. It is held: "7. In view of these facts, we are of the opinion that appellant herein had opted for remission of tax scheme under which a porti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....difference between remission and exemption. As while in case of exemption, the levy itself is statutorily exhausted and no sales tax is paid or payable by the assessee whereas in case of remission, the sales tax is payable as there is no exemption from levy and /or payment of sales tax at the time of clearance and the same has to be statutorily discharged." 5. Though Department has given much e....