The liability to pay sales tax by instalments cannot be treated to be beyond the provisions of section 43B of the Act

Whether the liability has been deferred or not has to be considered not from the simplistic point of the term ‘defer’ but in context of the incentive scheme for deferral, as is evident from the circular issued by Central Board of Direct Taxes. The subject matter of Circular no. 496 dated 25th September, 1987 is Sales Tax Deferral Scheme and applicability of provisions of section 43B of the Act.

The circular would be applicable provided the sales tax due and payable is deferred as an incentive offered by the deferra

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