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2016 (10) TMI 694 - AT - Income TaxAddition of unutilised CENVAT credit to the closing stock - exclusive method of accounting - Held that:- We find that the ld.CIT(A) while deciding the issue in favour of assessee has given a finding that assessee is following exclusive method of accounting whereby the excise duty is not included in the valuation of stock and raw-materials as the excise duty paid and collected is not made part and parcel of the Profit & Loss A/c. He has further given a finding that assessee has complied with the provisions of section 145A of the Act and the effect of including excise duty in valuation of closing stock does not affect the profit and is Revenue neutral. He has further relied on the decision of Hon’ble Gujarat High Court in the case of Narmada Chematur Petrochemicals Ltd.(2010 (8) TMI 263 - Gujarat High Court ) Before us, Revenue has neither controverted the finding of ld.CIT(A) nor has placed any contrary binding decision in its support. We further find that the Hon’ble Apex Court in the case of Indo Nippo Chemicals (2003 (1) TMI 8 - SUPREME Court) has held that unavailed MODVAT credit cannot be construed as income and there is no liability to pay tax on such unavailed MODVAT credit. In view of the aforesaid facts, we find no reason to interfere with the order of the ld.CIT(A). - Decided against revenue
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