2006 (8) TMI 386

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....e buyer and repay it after prescribe period under the package incentive scheme for deferred payment for sales tax payers introduced by the Government of Maharashtra. Under the Notification issued in November, 2002, an option was given to the beneficiaries working under the deferred payment scheme to avail abatement of 60% of the deferred sales tax liability on payment of 40% of the sales before a particular date. Under the said notification, out of total tax liability of Rs. 10,12,48,116/-, the assessee remitted an amount of Rs. 4,04,52,370/- and thereby claimed and received the abatement of Rs. 6,07,95,746/-. The abatement was claimed and availed relating to the sales effected during the period from 1-7-97 to 31-12-2000. The said abatement....

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....ed from the consumers at full rate but only 50% was paid to the State Government and balance of 50% was given as a capital subsidy, assessee would be entitled with a full deduction of 100% of sales tax. The Tribunal has also referred to paragraph 6 of the CBEC Circular No. 671/62/2002-CX., dated 9-10-2002 which reads as follows : "Therefore, since the set-off scheme of sales tax does not change the rate of sale 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 under Section 4. In other words, only that amount of Sales Tax will be permissible as deduction under Section 4 as is equal to the amount le....