2019 (12) TMI 109

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.... 28 February, 2019 that dismisses ten appeals filed by the assesses, including four by the present Appellants. 2. The issue involved in all these four appeals is, whether the Sales Tax subsidy received in the form of VAT-38B challans which has been used to pay VAT/CST liability of the subsequent period, amounts to retention of VAT/CST amount collected by the Appellants from the customers and thus liable to be included in the transaction value of the final products of the Appellants. This issue has come up before the Tribunal on a number of occasion and, in fact, insofar as the first Appellant is concerned, the issue was decided in favour of the Appellant in two matters relating to the previous years and in the case of Appellant No. 3 had....

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....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 Act. As per the concept of transaction value outlined in Section 4, with effect from 01/07/2000, any sales tax/VAT actually paid can be deducted from the transaction value for payment of excise 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 C....