SC: SARFAESI Act Was Not Applicable in Nagaland Before its 2021 Adoption, Dismisses Creditor’s Plea  ||  SC: Lis Pendens Applies To Money Suits on Mortgaged Property, Including Ex Parte Proceedings  ||  Kerala HC: Civil Courts Cannot Grant Injunctions in NCLT Matters and Such Orders Can Be Set Aside  ||  Bombay High Court: Technical Breaks to Temporary Employees Cannot Deny Maternity Leave Benefits  ||  NCLAT: Appellate Jurisdiction Limited to Orders Deciding Parties’ Rights, Not Procedural Directions  ||  NCLAT: Personal Guarantors Involved In NCLT Proceedings Can Appeal Against Insolvency Admission  ||  Supreme Court: Foreign Companies’ Head Office Expenses in India are Capped under Section 44C  ||  SC Directs Trial Courts to Systematically Catalogue Witnesses and Evidence in Criminal Judgments  ||  SC Calls For Sensitising Future Generations on Equality in Marriage to Combat Dowry Practices  ||  SC: Separate Suits Against Confirmed Auction Sales are Barred; Remedy Available under Sec 47    

Essel Propack Ltd. v. Commissioner of Central Excise, Thane - I - (Customs, Excise and Service Tax Appellate Tribunal) (06 Oct 2015)

Difference between sales tax charged and NPV paid not includible as transaction value

Excise

Distinguishing three judgments of the Supreme Court that the difference between amounts collected by Assessee from its customers as sales tax and the amount paid as sales tax to the Department pursuant to a sales tax incentive scheme, is includible in the meaning of ‘transaction value’ as per Section 4 of the Central Excise Act, 1944, CESTAT, Mumbai, ruled otherwise. It noted that none of the previous decisions dealt with schemes by which it became optional for assessees to pay the amount either at the end of stipulated period or at any point of time earlier on the basis of Net Present Value of the amount of sales tax to be paid at the end of deferral period. The bench reasoned that the retention period is very long and the “value of the money changes with time”. Hence, the concept of Net Present Value has to mean the value of deferred sales tax at the time of clearance. While Maharashtra has specified Net Present Value by way of notification, other states do not have provisions similar to this; CBEC has not provided rules for treatment of Net Present Value.

Tags : EXCISE   SALES TAX   NET PRESENT VALUE   TRANSACTION VALUE  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved