https://www.taxtmi.com/caselaws?id=153160 Purchase tax liability under the mercantile system accrued when the taxable purchases were made, not when an exemption notification was later cancelled. The court reasoned that liability to tax arises on the taxable event itself; non-recovery by the Government does not defer accrual, and the later withdrawal of exemption merely ends the suspension of an existing liability. As a result, the assessee had to recognise and provide for the liability in the earlier accounting years in which the purchases occurred. Deduction in the later assessment year was therefore disallowed, and the reference was answered against the assessee. en-us Fri, 19 Jun 1981 00:00:00 +0530 Thu, 18 Jul 2013 17:33:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=153160 Purchase tax liability under the mercantile system accrued when the taxable purchases were made, not when an exemption notification was later cancelled. The court reasoned that liability to tax arises on the taxable event itself; non-recovery by the Government does not defer accrual, and the later withdrawal of exemption merely ends the suspension of an existing liability. As a result, the assessee had to recognise and provide for the liability in the earlier accounting years in which the purchases occurred. Deduction in the later assessment year was therefore disallowed, and the reference was answered against the assessee. Case-Laws VAT and Sales Tax Fri, 19 Jun 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=153160