2018 (12) TMI 1781

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ral Excise Tariff Act, 1985. It has been the contention of the department that the appellant has received investment subsidy and employment generation subsidy against Entitlement Certificate No. 1/1 dated 31 October 2013 sanctioned under the Rajasthan Investment Promotion Policy 2010. It has been the stand of the department that the assessee has not paid the central excise duty on the additional consideration collected from the buyers and retained by them to the extent of sales tax liability not actually paid to the State Exchequer and thereby the appellant have evaded central excise duty amounting to Rs. 74,011/- for which a show cause notice came to be issued which was confirmed by the order-in-original No. V (CEX) SCN/RPT/Pali/62/2015/16....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 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 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 disti....