Inclusion of interest on deferred sales tax: such interest is not additional consideration and is excluded from assessable value. Interest earned by a manufacturer on deferred sales tax under a State incentive does not amount to additional consideration from the buyer and therefore cannot be added to the assessable value under Rule 5 of the earlier Valuation Rules, 1975 or Rule 6 of the Central Excise Valuation Rules, 2000; this clarification should be communicated to field formations and trade.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Inclusion of interest on deferred sales tax: such interest is not additional consideration and is excluded from assessable value.
Interest earned by a manufacturer on deferred sales tax under a State incentive does not amount to additional consideration from the buyer and therefore cannot be added to the assessable value under Rule 5 of the earlier Valuation Rules, 1975 or Rule 6 of the Central Excise Valuation Rules, 2000; this clarification should be communicated to field formations and trade.
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