2024 (8) TMI 87

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....t Rani, Guwahati. In terms of Notification No. 20/2007, in respect of such goods, this Notification specifies that duty exemption is available on value addition if the value addition is to the extent of 36% minimum. Para 3(1) of this Notification specifies that if the manufacturer finds that the actual value addition in the production or manufacture of the said goods is at least 115% of the rate specified in the table (36% in this case), in such a case, the appellant can seek to fix a special rate for their product. Since the duty exemption is dependent on the value addition, if the value addition is more, the assessee would be able to claim higher Excise Duty Exemption. 2. In the present case, the appellants have submitted their documen....

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....ts given. He also relies on the case law of SRF Ltd. Vs. CEGAT, Chennai, 2021 (377) ELT 737 (Mad.), wherein it is held that subsequent issuance of Credit Note towards discount will not allow the assessee to avail the benefit of abatement. Relying on these case laws and the factual details discussed above, he submits that the Adjudicating Authority is in error in removing the incentive of Rs. 3,70,04,990/- to arrive at the value for the turnover. 4. Apart from this, the Appellant is operating under the beneficial VAT Scheme in terms of The Assam Industries (Tax Remission) Scheme, 2005. As per this Scheme, the Appellant is required to pay only 1% of the VAT and balance 99% of the VAT is given as remission by the State Government. The Adjud....

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....& Loss Accounts. Therefore, such discounts and incentives will have to be removed from the total turnover to arrive at the net turnover. Similarly in respect of the VAT, he submits that the appellant has collected the value of VAT from the customers but 99% of VAT has been given as remission by the State Government. Therefore, this cannot be treated as part of the turnover of the Appellant. Therefore, he justifies the rejection of the appellant's application towards fixation of special rates. 7. Heard both sides and perused the appeal papers and documents made available to us. 8. Notification No. 20/2007-CE dated 25/4/2007 specifies that for the goods covered under Serial No. 16, the minimum value addition shall be to the extent of 36....

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....d VAT as held by the Adjudicating Authority are considered, the turnover would be as under:- Gross turnover : 61,98,01,442 Excise Duty : - 2,64,92,742 Net turnover : 59,33,08,700 Less-Discount/Incentive : 3,70,04,990 } Disallowed by Less-VAT Remission : 3,33,62,000} Adjudicating Authority Final Net turnover : 52,29,41,710 Final Net turnover as per CA's Certificate: 52,85,90,385 10. From the above Table, it gets clarified that even after considering both VAT amount and discount as not part of the turnover, still the turnover comes to Rs. 52,29,41,710, whereas the appellant/Chartered Accountant has taken the turnover as Rs. 52,85,90,385/-. Based on their figure of Rs. 52,85,90,385/-, the appellant has....