Excise duty liability deduction upheld despite pending levy challenge, following binding prior authority.

Excise duty liability was held deductible in the relevant assessment year even though it arose from a show-cause notice and the levy was under challenge. The Court followed prior binding authority that such liability can be allowed as a deduction notwithstanding pendency of the challenge to the levy. On that basis, the Tribunal's view allowing the deduction was upheld and the issue was answered in favour of the assessee.

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Issues: Whether the amounts claimed as excise duty liability were deductible for the relevant assessment years when the liability arose from a show-cause notice and the levy was under challenge.

Analysis: The Court noted that the question was already concluded by prior authority holding that excise duty liability can be allowed as a deduction in the relevant year notwithstanding the pendency of the challenge to the levy. Following the earlier binding decisions, the Tribunal's view that the assessee was entitled to deduction of the amounts claimed was upheld.

Conclusion: The question was answered in the affirmative and in favour of the assessee.

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