TaxTMI 
TaxTMI 
2024 (11) TMI 1568
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....issioners assailing the impugned order to the extent it had not confirmed the duty demand for the extended period of limitation and for non-imposition of penalty on the appellants-assessee. 2.1 The facts of the case, leading to this appeal, are summarised herein below: 2.2 The appellants are having their factory at Verna industrial estate, and inter alia, are engaged in the manufacture of excisable goods viz. water purification system and parts, falling under Central Excise Tariff Chapter Heading (CTH) 84 of the First Schedule to the Central Excise Tariff Act, 1985. As a manufacturer of excisable goods, the appellants are duly registered with jurisdictional Central Excise department vide Central Excise Registration No. AAACI1726LXM003 and also discharge appropriate duty liability on removal of the said final products out of their factory premises. 2.3 In this case, the Government of Goa had framed a Scheme, known as "Goa Value Added Tax Deferment-cum-Net Present Value Compulsory Payment Scheme, 2005" (for short referred to as "Goa VAT NPV"), as a part of Goa Government's investment promotion and industrialization efforts undertaken with an objective to promote expansion of....
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.... time and also proposed for imposition of penalty under Section 11AC ibid on the appellant assessee assessee. Further, for the subsequent period of October, 2008 to September, 2009, periodical demand for duty amount of Rs.3,21,688/- along with interest under Section 11A ibid and for imposition of penalty under Section 11AC ibid on the appellant assessee was also issued by the department. The various show cause notices (SCNs) issued in this regard was adjudicated vide the common original order dated 30.06.2015, wherein the proposals made in the SCNs were confirmed only for the normal period and duty demands for the extended period of limitation was dropped by learned adjudicating authority. Further, he did not impose penalty on the appellantsassessee. Being aggrieved with the impugned order, the appellant assessee had filed this appeal before the Tribunal. Feeling aggrieved with the impugned order to the extent it had dropped the proposals made in the SCN for demand of duty by invoking extended period of limitation and for imposition of penalty on the appellants assessee, the Revenue has also preferred an appeal before the Tribunal. 3. Heard both sides and perused the records of ....
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....tax payable. Exercising the option to wipe out the deferred tax liability on NPV will not make any difference in their liability to pay excise duty. xxx xxx xxx xxx 38.1 On 1-7-2000 the new section was introduced. At the time of introduction of new Section 4, the Board has issued circular F. No. 354/81/2000-TRU, dated 30-6-2000. Paras 10 and 11 are relevant for the present issue and the same are reproduced below :- "10. As regards exclusion of taxes while working out assessable value, the definition of transaction value itself mentions that whatever amount is actually paid or actually payable to the Government or the relevant statutory authority by way of excise, sales tax and other taxes, such amount shall be excluded from the transaction value. In other words, if any excise duty or other tax is paid at a concessional rate for a particular transaction, the amount of excise duty or tax actually paid at the concesssional rate shall only be allowed to be deducted from price. The assessee cannot claim that the excise duty or tax payable at the "normal rate" should be allowed to be deducted. The words "actually paid" have, therefore, been used to the definition of ....
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....ier Valuation Rules, 1975 & Rule 6 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, "additional consideration" should flow directly or indirectly from the buyer to the seller. The interest earned, on deferred sales tax, by the manufacturer is not a benefit extended by the buyer to the seller but is an incentive, accruing in pursuance of State Government policy. Therefore, this amount cannot be treated as "additional consideration" under the Central Excise Valuation Rules and the same cannot be added to the assessable value in terms of Rule 5 of Central Excise Valuation Rules, 1975 or Rule 6 of the Valuation Rules, 2000. (4) This circular may be brought to the notice of the field formations. (5) Suitable Trade Notice may be issued for the benefit of the Trade. (6) Hindi version will follow. (7) Receipt of these instructions may be acknowledged." Thus Board was of the view that interest earned cannot be added to the assessable value in such facts and circumstances both under Valuation Rules, 1975 or Valuation Rules, 2000 i.e. under old Section 4 or new Section 4. 38.3 It would thus be seen from ....
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....tors to increase commercial production so that they are able to receive more subsidy, but this can possibly have no bearing on the consideration to be received by the appellant so as to include this value in the transaction value. ** ** ** 31. To revert, what has to be examined is whether in a case where the assessee collects Rs. 2500/-towards sales tax and adjusts the sales tax liability of Rs. 1000/- from VAT 37B challan issued by the State Government as subsidy under the promotion policy and deposits the remaining amount of Rs. 1500/- towards sales tax in cash through VAT 37A Challan, then whether this 1000/- can be said to be an additional consideration. The decision of the Supreme Court in Super Synotex India would not be applicable to the facts of the present case as that was a case where 25% of the amount collected as sales tax from the customers was paid by the assessee and the remaining 75% of the amount was retained by the assessee, which amount was treated to be the price of the goods. In the promotion policy involved in the present case, the subsidy does not reduce the sales tax that is required to be paid by the assessee as the entire amount of sales tax co....