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2014 (9) TMI 271 - HC - Income TaxAllowability of excise duty u/s 43B r.w. section 145A - valuation of closing stock - Duty shown as payable but not paid to be allowed as expenditure or not – Held that:- The manufactured sugar was lying in stock and the same were not cleared from the factory - the Tribunal was justified in holding that in respect of unsold sugar lying in stock, central excise liability was not incurred and consequently the addition of excise duty made by the assessing officer to the value of the excisable goods was liable to be deleted - The closing stock can consist of opening stock, purchases and manufactured stock - Reference was then made to the statutory mandate of Section 145A of the Act, that the valuation of the closing stock must include any tax, duty, cess or fee actually paid or incurred by the assessee to bring the goods to the place of its location and condition on the date of valuation - on manufactured goods, excise duty is payable after adjustment of CENVAT or MODVAT credit on the date of removal and not on the date of manufacture – relying upon CBDT circular No. 772 dated 23.12.1998 and CIT Vs. Lakshmi Sugar Mills Co. Ltd. [2013 (7) TMI 385 - DELHI HIGH COURT] - MODVAT credit cannot be reduced from the value of opening or closing stock – thus, the matter is to be remitted back to the Tribunal for fresh adjudication – Decided in favour of revenue.
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