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2023 (11) TMI 363 - AT - Central ExciseRecovery of Central Excise Act with penalty - definition of ‘transaction value’ in section 4(3)(d) of Central Excise Act, 1944 requires that any additional consideration would have to be added for the purpose of determination of duty liability or not - HELD THAT:- It is clear from the facts and circumstances of the proceedings that the scheme did not involve retention of any amount on the part of the assessee. On the other hand, it entailed premature payment restricted to the present value, net discounting term for measuring the time value of the money. In effect, what was foregone by the State Government was merely the cost incurred by the assessee for not awaiting the appropriate date of payment for discharge of tax liability. A similar dispute had came up before the Tribunal in Uttam Galva Steels Ltd [2015 (10) TMI 1727 - CESTAT MUMBAI] and it was held that When the goods are being cleared (i.e. time of removal) actual sales tax paid is nil but sales tax actually payable is the normal sales tax or what has been collected by the assessee from its customers. Among the terms actually paid or actually payable used in transaction value, actually paid is not relevant in the present set of appeals. What is relevant is actually payable. In view of the decisions of the Tribunal, relating to the peculiarity of the scheme which was prevailed insofar as the impugned order is concerned, the demand is set aside - appeal allowed.
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