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2024 (1) TMI 179 - CESTAT NEW DELHILevy of Clean Energy Cess - whether CEC is payable on the stock of coal lying with the appellant as on 30.06.2017 which stock was removed on or after 01.07.2017? HELD THAT:- In Radhakrishna Ramnarain Limited vs. R. Parthasarathy & other [1980 (4) TMI 116 - HIGH COURT OF BOMBAY], the Bombay High Court also observed that the taxable event is the removal of goods and not the manufacture. It is useful to refer to a decision of the Bombay High Court in Commr. of Income Tax, Pune-III vs. Loknete Balasaheb Desai S.S.K. Ltd. [2011 (6) TMI 48 - BOMBAY HIGH COURT]. The issue that arose before the Bombay High Court was regarding the excise duty liability incurred on the manufacture of sugar in the light of the provisions of section 145A(b) of the Income Tax Act, 1961 - The Bombay High Court held that the expression ‘incurred’ in section 145A(b) must be construed to mean liability that was actually incurred by the assessee. The issue that arose for consideration before the Bombay High Court was whether in a case where excisable goods are manufactured and lying in stock on the last day of the accounting year, the manufacturer has ‘incurred’ liability to pay excise duty on the manufactured goods. The Bombay High Court held that though the date of manufacturer may be the relevant date for dutiability, the relevant date for duty liability is the date on which the goods were cleared. Thus, in respect of excisable goods manufactured and lying in stock, the excise duty liability would get crystallized on the date of clearance of goods and not on the date of manufacture. The appellant was not required to pay CEC on repeal of the 2010 Finance Act on goods removed on or after 01.07.2017 even though they were lying in stock as on 30.06.2017. The impugned order dated 20.04.2022 passed by the Commissioner, therefore, cannot be sustained and is set aside - Appeal allowed.
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