https://www.taxtmi.com/caselaws?id=6119 SC held that Modvat credit, being an irreversible credit available to manufacturers on purchase of duty-paid raw materials, does not automatically constitute taxable income under the Income-tax Act. Consequently the Assessing Officer may not treat the excise duty element as income by applying inconsistent valuation methods to duty-paid raw materials at purchase and to unconsumed stock at year-end; valuation must reflect the true nature of Modvat credit and cannot be manipulated to create taxable income. en-us Thu, 23 Jan 2003 00:00:00 +0530 Mon, 29 Sep 2025 16:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6119 SC held that Modvat credit, being an irreversible credit available to manufacturers on purchase of duty-paid raw materials, does not automatically constitute taxable income under the Income-tax Act. Consequently the Assessing Officer may not treat the excise duty element as income by applying inconsistent valuation methods to duty-paid raw materials at purchase and to unconsumed stock at year-end; valuation must reflect the true nature of Modvat credit and cannot be manipulated to create taxable income. Case-Laws Income Tax Thu, 23 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6119