Excise duty payable on Sales tax paid at NPV value, Central Excise

[SANDESH SHINDE]

Dear Sir, Is excise duty required to be paid on sales tax paid at concessional rate on Nov value, pls explain , pls give any reference regarding this, thanks and regards

Posts / Replies

[PAWAN KUMAR]

Dear Sir,

As per my view, no central excise duty is not payable on sales tax component.

[Pradeep Khatri]

Dear Sandesh,

Please check Maruti Suzuki judgment and Super Synotex pronounced by SC. In our opinion you would have to pay the Excise duty on such amount.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Naveed S]

Yes, and the said issue also clarified by the department.

[Sanjay Bhalerao]

Excise Duty need not be paid on NPV Calculated. As NPV is value which Assessee is has to pay to department.

But, Excise Duty liability may arise on Difference between Actual Sales Tax Liability and NPV.

As this is the value which have not paid or payable to Department and recovered the same from Customer.

As per Section 4 - closing line reads as --- "but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods"

If Sales Tax department treat/ enact above difference as "Deemed Payment" in that case Excise Duty Liability may not arise.