| The Tax Publishers2020 TaxPub(DT) 2144 (SC) : (2020) 269 TAXMAN 0563 INCOME TAX ACT, 1961
Section 261 Section 145A
Where the department preferred SLP to appeal against the judgment of Rajasthan High Court in CIT v. Rajasthan State Ganganagar Sugar Mills Ltd. [ITA Nos. 99, 212 & 539 of 2009, 95, 655 & 98 of 2011, 244 & 120 of 2012, 99 of 2014 & 66 of 2015, dt. 26-5-2016] : 2017 TaxPub(DT) 1047 (Raj-HC), whereby the High Court held that liability to excise arises when goods are removed from the factory/bonded warehouse. Though taxable event is manufacture/production, however, the liability to pay the duty is postponed till the time of removal under rule 9A. As per section 145A, only the tax, duty, cess or fees actually paid or incurred by the assessee to bring the goods to its place of location forms part value of stock that unpaid excise duty on goods in stock that had not left the bonded warehouse, could not, therefore, be added to the value of closing stock, the Supreme Court dismissed the SLPs and pending applications therein as withdrawn, leaving question(s) of law open.
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Appeal (Supreme Court) - Special leave petition - Valuation of closing stock - Unpaid excise duty in relation to goods lying in bonded warehouse
Department preferred SLP to appeal against the judgment of Rajasthan High Court in CIT v. Rajasthan State Ganganagar Sugar Mills Ltd. [ITA Nos. 99, 212 & 539 of 2009, 95, 655 & 98 of 2011, 244 & 120 of 2012, 99 of 2014 & 66 of 2015, dt. 26-5-2016] : 2017 TaxPub(DT) 1047 (Raj-HC), whereby the High Court held that liability to excise arises when goods are removed from the factory/bonded warehouse. Though taxable event is manufacture/production, however, the liability to pay the duty is postponed till the time of removal under rule 9A. As per section 145A, only the tax, duty, cess or fees actually paid or incurred by the assessee to bring the goods to its place of location forms part value of stock that unpaid excise duty on goods in stock that had not left the bonded warehouse, could not, therefore, be added to the value of closing stock. Held: Counsel for the petitioner, on instructions issued by the Department of Revenue, Ministry of Finance vide F.No. 390/Misc./116/2017-JC, dated 22-8-2019, sought permission to withdraw these special leave petitions along with pending applications therein due to low tax effect. Permission was granted, subject to just exceptions. The special leave petitions and pending applications were dismissed as withdrawn.
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