2025 (1) TMI 1594

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....production in the year 2008. They were availing the North East Area Based Exemption Notification No. 32/99-CE, dated 08.07.1999 and are entitled to get refund of the whole of the duty of excise paid them out of Account Current (PLA). They are also a beneficiary unit under Meghalaya Industrial policy, 1997 by which they are eligible for Capital Investment Subsidy. As per this scheme they are allowed to retain 99% of the VAT and pay the balance 1 % to the State Govt. 2. The Revenue issued Show Cause Notice C.No. CH-39/2/Adj/2013/1525-25, dated 12th November, 2013, alleging the appellant availed VAT Remission under the Meghalaya Value Added Tax Act, 2003, during the period from September,2008 to 27th February, 2013. As per Revenue, this remis....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and is known to the Dept. Hence, the SCN issued on 12th November, 2013, for the transactions taking place during September,2008 to 27th February, 2013, is partly time barred. He relies on the case law of Select Poly Products Pvt Ltd., cited supra, wherein apart from on merits, the appeal was also allowed on account of limitation. In view of these submissions, he prays that the confirmed demand for the extended period may be set aside on account of limitation also. 7. The Ld AR submits that while the case laws cited by the appellant may be in favour of the appellant, the judgement of the Hon'ble Supreme Court in the case of Commnr. Of Central Excise, Jaipur vs M/S. Super Synotex (India) Ltd. & Ors - 2014 (301) ELT 273 (SC) is in favour of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... as partial exemption and, taking certain other facts into consideration, came to hold that the assessee had deliberately with an intent to evade payment of duty had suppressed the fact that though it was availing partial sales tax exemption under the Sales Tax Incentive Scheme of 1989 for the relevant period upto 75% of tax liability, yet it was paying only 25% of the tax leviable despite collecting additional consideration to the extent of the amount of sales tax and, therefore, the additional amount collected under the camouflage of incentive tax had to be taken note of and, accordingly, price was to be declared and formed as a part of the value for the levy of excise duty. 23. In view of the aforesaid legal position, unless the sales ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ourt, we hold that the sales tax concession retained by the Appellant is required to be added in the assessable value for the purpose of levy of Central Excise duty. 12. On the other hand, we find that the case laws cited by the appellant have either not considered the judgement of the Supreme Court cited supra, or were dealing the issue wherein the VAT challans were required to be utilized for their subsequent payment of VAT. Therefore, we find that these case laws cannot come to the rescue of the appellant. 13. However, we find force in the arguments of the appellant with reference to the time bar angle. As has been observed above, the very issue was before various Tribunals and the same was finally settled by the Hon'ble Supreme Court.....