Home › Tax Laws › Kisan Sahkari Chini Mills Ltd. v. CIT (2019) 267 Taxman 384 / 111 taxmann.com 384 (All.)(HC) Editorial: SLP is granted to the assessee, Kisan Sahkari Chini Mills Ltd. v. CIT (2019) 267 Taxman 383 (SC)

Kisan Sahkari Chini Mills Ltd. v. CIT (2019) 267 Taxman 384 / 111 taxmann.com 384 (All.)(HC) Editorial: SLP is granted to the assessee, Kisan Sahkari Chini Mills Ltd. v. CIT (2019) 267 Taxman 383 (SC)

S. 145A : Method of accounting – Valuation – Excise duty though not paid is liable to be included in valuation of closing stock. [S. 145A(b)]

Assesse-society was engaged in business of manufacturing of sugar Assessee’s claim was that since excise duty had not been paid, value of said duty was not liable to be added in valuation of closing stock.  Tribunal held  that in view of S.  145A(b) which was inserted by Finance (No. 2) Act, with effect from 1-4-1999, it was clear that closing stock would include amount of excise duty which had been incurred by assessee to bring goods to place of its location.  High Court also opined that excise duty was payable as soon as excisable item was produced or manufactured and, thus, liability to pay excise duty did not depend on any subsequent event although it may be collected after sometime.  Order of tribunal is affirmed. (AY. 2002-03)