| COURT: | Bombay High Court |
| CORAM: | A. M. Badar J, S. V. Gangapurwala J |
| SECTION(S): | 145A |
| GENRE: | Domestic Tax |
| CATCH WORDS: | cenvat credit, closing stock valuation, modvat credit |
| COUNSEL: | Hiro Rai, Subhash S. Shetty |
| DATE: | July 7, 2017 (Date of pronouncement) |
| DATE: | July 29, 2017 (Date of publication) |
| AY: | 2008-09 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 145A: Irrespective of the method of accounting followed, the unutilized Cenvat credit does not constitute income and cannot be directly added to the closing stock. The assessee is entitled to follow the exclusive method and value the closing stock by excluding the modvat credit | |
Merely because the Modvat credit was irreversible credit offered to manufacturers upon purchase of duty paid raw materials, that would not amount to income which was liable to be taxed under the Act. It is also held that whichever method of accounting is adopted, the net result would be the same
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