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2020 (8) TMI 474 - HC - Income TaxValuation of stock - inclusion of duty of excise in the value - Accrual of liability - whether liability to pay excise duty is incurred immediately on manufacture of liquor or it arises only when the same is sought to be removed from the premises of the manufacturer, either for the purposes of sale or otherwise? - HELD THAT:- Assessee's liability to pay duty on the goods manufactured arises only at the time of removal of the same from its premises, be it distillery, or a warehouse or any other place of storage established or licensed under the Karnataka State Excise Act and not at any time earlier. The aforesaid issue is no longer res integra in view of decisions of Supreme Court in Polyset Corporation [1999 (10) TMI 66 - SUPREME COURT] wherein held that till date of clearance of goods, excise duty payable on such goods does not get crystallized and assessee cannot be said to have incurred the excise duty liability. Thus, it was held that in respect of the excise goods not being removed, no liability is accrued and there is no question of payment of excise duty. The same view has been reiterated in 'MARUTI SUZUKI (INDIA) LIMITED VS. COMMISSIONER OF INCOME TAX, DELHI' [2020 (2) TMI 376 - SUPREME COURT ] - Decided against revenue.
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