https://www.taxtmi.com/article/detailed?id=7580 Whether unutilized CENVAT credit constitutes income is considered under Rules 3-5 of the CENVAT Credit Rules, 2004 and precedent on MODVAT/CENVAT credits. Prior authority treats such credits as adjustments to excise/service tax liability or refundable amounts rather than taxable income. The Bombay High Court applied that principle to reject adding unutilized CENVAT credit to closing stock, recognizing that valuing inputs net of credit under an exclusive accounting method is permissible and that the accounting method does not change the net profit effect. en-us Mon, 28 Aug 2017 12:51:24 +0530 Mon, 28 Aug 2017 12:51:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=7580 Whether unutilized CENVAT credit constitutes income is considered under Rules 3-5 of the CENVAT Credit Rules, 2004 and precedent on MODVAT/CENVAT credits. Prior authority treats such credits as adjustments to excise/service tax liability or refundable amounts rather than taxable income. The Bombay High Court applied that principle to reject adding unutilized CENVAT credit to closing stock, recognizing that valuing inputs net of credit under an exclusive accounting method is permissible and that the accounting method does not change the net profit effect. Articles Income Tax Mon, 28 Aug 2017 12:51:24 +0530 https://www.taxtmi.com/article/detailed?id=7580