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2012 (6) TMI 168 - CESTAT, MUMBAITransaction value - inclusion of amount towards deferment of sales tax scheme – appellant opted an option to prematurely pay in place of the deferred tax amount, an amount equal to the net present value (NPV) of the deferred tax - department was of the view that the difference between the sales tax collected from the customers and the sales tax paid to the state authorities at NPV should be treated as an additional consideration received from the buyers of the goods and, therefore, they should form part of the transaction value – Held that:- Board vide Circular No.671/62/2002-CX dated 09/10/2002, inter alia, clarified that since the set-off scheme of sales tax does not change the rate of sales tax payable/chargeable on the finished goods, the set-off is not to be taken into account for calculating the amount of sales tax permissible as abatement for arriving at the assessable value u/s. 4. deduction towards sales tax is permissible based on the amount billed or charged from the customers in accordance with the law irrespective of the fact whether the amount is retained by the assessee or incentives are given by the State Government to the assessee in respect of the sales tax so collected. in the case of Paper Products Ltd., (1999 (8) TMI 70 (SC) ) circulars issued by the CBEC are binding on the department and the department is precluded from challenging the correctness of the circulars even on the basis that the same is inconsistent with the statutory provision
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