FIFO computation accepted on factual findings; January 2004 treated as the relevant month, with no substantial question of law arising.

The Tribunal and Commissioner (Appeals) were justified in accepting the assessee's FIFO computation by treating January 2004 as the relevant month rather than December 2003, because the appellate authorities had examined the annexures and calculation basis and found January 2004 to be the most proximate month to clearance of inputs. The High Court held that this conclusion rested on concurrent factual findings, disclosed no perversity or legal error, and therefore no substantial question of law arose. The issue was decided against the Revenue and in favour of the assessee.

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Issues: Whether the Tribunal and the Commissioner (Appeals) were in accepting the assessee's computation under the FIFO method by taking January 2004 as the relevant month instead of December 2003.

Analysis: The appellate authorities had examined the annexures and calculation basis and recorded that January 2004 was the most proximate month to the clearance of inputs. Their conclusion on the proper month to be adopted under the FIFO method was based on appreciation of facts and the material on record. The High Court found no perversity or legal error in those concurrent factual findings, and therefore no substantial question of law arose from the Tribunal's order.

Conclusion: The issue was decided against the Revenue and in favour of the assessee.

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