2012-VIL-43-SC-DT

Equivalent Citation: [2013] 352 ITR 481

Supreme Court of India

C.A. No. 6721 Of 2012 With Nos. 6722 Of 2012, 6723 Of 2012, 6724 Of 2012 And 6725 Of 2012 arising out of SLP (C) No. S.L.P. (C) No. 32817 of 2010, 35277 of 2010, 35282 of 2010, 2027 of 2011, 3082 of 2011 and 23461/2012

Date: 19.09.2012

CIT

Vs

SHRI RAM HONDA POWER EQUIPMENT LTD.

BENCH

S.H. Kapadia and Mandan B. Lokur, JJ.

JUDGMENT

Civil Appeal No.6723/2012 @ S.L.P. (C) No.35282/2010

Civil Appeal No.6722/2012 @ S.L.P. (C) No.35277/2010

Civil Appeal No.6725/2012 @ S.L.P. (C) No.3082/2011

Heard learned counsel on both sides.

Leave granted.

These civil appeals filed by the Department concern Assessment Year 1997-1998. The assessee(s) follows net method of valuation of closing stock [see Note of the Auditor in Civil Appeal arising out of S.L.P. (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 @ S.L.P. (C) No.2027/2011

Heard learned counsel on both sides. Leave granted. These civil appeal filed by the Department concerns Assessment Year 1997-1998. 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 accounts 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.

 

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