| COURT: | Supreme Court |
| CORAM: | Navin Sinha J, Ranjan Gogoi J |
| SECTION(S): | 43B |
| GENRE: | Domestic Tax |
| CATCH WORDS: | actual payment, Excise Duty, Personal Ledger Account, PLA |
| COUNSEL: | Ajay Vohra |
| DATE: | November 24, 2017 (Date of pronouncement) |
| DATE: | November 25, 2017 (Date of publication) |
| AY: | 1993-94 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 43B: Advance deposit of central excise duty in the Personal Ledger Account (PLA) constitutes actual payment of duty within the meaning of s. 43B and the assessee is entitled to the benefit of deduction of the said amount | |
The purpose of introduction of Section 43B of the Central Excise Act was to plug a loophole in the statute which permitted deductions on an accrual basis without the requisite obligation to deposit the tax with the State. Resultantly, on the basis of mere book entries an assessee was entitled to claim deduction without actually paying the tax to the State. Having regard to the object behind the enactment of Section 43B and the preceding discussions, it would be consistent to hold that the legislative intent would be achieved by giving benefit of deduction to an assessee upon advance deposit of central excise duty notwithstanding the fact that adjustments from such deposit are made on subsequent 14 clearances/removal effected from time to time
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