Additional Excise Duty Not Payable on VAT Incentive: CESTAT Mumbai

Alpha Industries Vs Commissioner of Central Excise (CESTAT Mumbai) The Tribunal ruled that the demand raised was not sustainable, and Alpha Industries was not liable to pay additional excise duty on the VAT incentive amount. Alpha Industries, engaged in manufacturing excisable goods, availed benefits under the Goa VAT NPV Scheme, 2005, which allowed tax deferment or partial payment of VAT/Sales Tax. The department contended that the difference between the collected tax and the Net Present Value (NPV) paid should be considered additional consideration for goods sold, making it taxable under Cen...