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TMI Blog2024 (5) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... of Maharashtra. Under such scheme, the Government had provided for premature re-payment of deferred sales tax at Net Present Value (NPV). In case, where the deferred sales tax liability is paid by way of premature payment as per NPV, then it would be deemed as if the full sales tax / VAT liability has been discharged and as a result the remaining amount towards such liability retained by the dealer/assessee would be considered as incentive. The incentive received by the appellant in the present case was interpreted by the Department that the same is on account of discount and should form part of the transaction value under Section 4(1) (a) read with Section 4(3) (d) of the Central Excise Act, 1944. On the basis of such analysis, the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Ltd. -2005 (187) E.L.T. 3 (S.C.) 4. We find that an identical issue to the present case has been dealt with by the Tribunal in the case of Uttam Galva Steel Ltd. (supra). The relevant paragraph in said order is extracted herein below: "40. One of the contentions of the learned Commissioner (AR) was with reference to Explanation in Section 4(1) of the Central Excise Act. In the said Explanation, the words used are "actually paid" with reference to exclusion of sales tax and other taxes. A lot of emphasis was given by the learned Commissioner (AR) that since in the Explanation, the words used are "actually paid" and not "actually paid or actually payable", so all that can be excluded is the amount actually paid. According to the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the amount payable has not been varied by the Sales Tax Authorities. Under the facts of the present cases, in our view, the Explanation may not be of any help to the Revenue as at the time of clearance, the term 'actually payable' was relevant and not 'actually paid'. Further, the amount of actually payable sales tax has not been varied by the Sales Tax Authorities. In view of the said factual matrix in the present cases, in our considered view, the Explanation does not help the cause of the Revenue and the contention is therefore rejected." 5. The Hon'ble Supreme Court in the case of Mazagon Dock Ltd. (supra) have held that subsidy received from the Government cannot be said to be the additional consideration, as it is not received f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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