Case Law Details
Harit Polytech Pvt. Ltd. Vs Commissioner (CESTAT Delhi)
Subsidy under Rajasthan Investment Promotion Policy-2003 not includible in transaction value for levy of excise duty
CESTAT Delhi held that the subsidy amount received under Rajasthan Investment Promotion Policy-2003 using VAT-37B challan cannot be included in the transaction value for the purpose of levy of central excise duty under section 4 of the Excise Act.
Facts- The appellant had been granted investment subsidy under the Rajasthan Investment Promotion Policy-2003 to the extent of Rs. 26,98,304/- during the relevant period by the State of Rajasthan in the form of Sales Tax VAT 37B challan and this amount of subsidy was adjusted by the appellant towards payment of VAT. The Department has included this amount of subsidy in the transaction value for the purpose of levy of central excise duty under section 4 of the Central Excise Act, 1944
Conclusion- In FCC Clutch India Pvt. Ltd. vs. Commissioner of Central Excise, Alwar, the Tribunal specifically dealt with the Rajasthan Scheme for payment of VAT using 37B challans and after following Welspun held that the subsidy amount paid by the assessee using VAT-37B challan cannot be added to the transaction value.
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