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Judgment
Civil Appeal No. 6721/2012 @ SLP (C) No. 23461/2012, Civil Appeal No. 6723/2012 @ SLP (C) No. 35282/2010, Civil Appeal No. 6722/2012 @ SLP (C) No. 35277/2010, Civil Appeal No. 6725/2012 @ SLP (C) No. 3082/2011 and Civil Appeal No. 6724/2012 @ SLP (C) No. 2027/2011:
Heard Learned Counsel on both sides. Delay condoned.
Leave granted.
The civil appeals filed by the Department are dismissed with no order as to costs.
S.L.P. (C) No. 32817/2010:
The Court would like to see the Note of the Auditor on the financial statement of the Company for the Assessment Year 1995-96.
Place this petition on Tuesday, i.e., 25th September, 2012, as first Item on the Board, for pronouncement of Order, subject to Auditor's Note being shown by the Assessee to the Court.
Civil Appeal No. 6721/2012 @ SLP (C) No. 23461/2012:
Heard Learned Counsel on both sides.
Delay condoned.
Leave granted.
The civil appeal filed by the Department concerns assessment year 1995-96.
The judgment of the Bombay High Court in the case of The Commissioner of Income Tax Vs. Indo Nippon Chemical Co. Ltd., squarely applies to this case and the same has been affirmed by this Court, which is reported in Commissioner of Income Tax Vs. Indo Nippon Chemicals Co. Ltd., The Assessee followed the net method of valuation of closing stock. The Authorities below are right in coming to the conclusion that MODVAT Credit is excise duty paid.
In the circumstances, the civil appeal filed by the Department is dismissed with no order as to costs.
Civil Appeal No. 6723/2012 @ SLP (C) No. 35282/2010, Civil Appeal No. 6722/ 2012 @ SLP (C) No. 352 77/2010 and Civil Appeal No. 6725/2012 @ SLP (C) No. 3082/2011:
Heard Learned Counsel on both sides.
Leave granted.
These civil appeals filed by the Department concern assessment year 1997-98.
The Assessee(s) follows net method of valuation of closing stock (see Note of the Auditor in Civil Appeal arising out of SLP (C) No. 35282 of 2010 at Page 217), The Note reads as under:
As per the practice consistently followed, excise duty payable estimated at Rs. 14,366,145/- on finished goods held in factory are neither included in expenditure nor valued in such stocks but are accounted for on clearance of goods from factory. This accounting treatment however has no impact on the profit for the year.
For the above reasons, the civil appeals filed by the Department are dismissed with no order as to costs.
Civil Appeal No. 6724/2012 @ SLP (C) No. 2027/2011:
Heard Learned Counsel on both sides.
Leave granted.
These civil appeal filed by the Department concerns assessment year 1997-98.
The Assessee follows net method of valuation of closing stock (see Note of the Auditor at Page 25 paragraph 8 of Additional Affidavit filed on behalf of the Respondent). The Note reads as under:
Excise. The company has been accounting liabilities for excise duty on finished products lying in the factory when clearance is made. The liabilities in respect of the finished products lying at the factory at the close of the year has not been provided for in the books of account and hence not included in the valuation of inventory of the finished products. However non provision of the excise duty as stated above has no impact on the profit of the year.
For the above reasons, the civil appeal filed by the Department is dismissed with no order as to costs.