https://www.taxtmi.com/caselaws?id=275597 Excise duty on finished goods held in closing stock need not be included in stock valuation where the duty is not yet due and payable under the charging and collection scheme. Although excise duty arises from manufacture, enforceable liability depends on removal of goods and determination of transaction value. Closing stock is valued at cost or market price, whichever is lower, and unrealised or unincurred liabilities are excluded unless legislation mandates inclusion. Section 145A did not apply to the relevant assessment year and, in any event, requires duty actually paid or liability actually incurred. Accounting entries cannot override the statutory position, so the assessee's valuation was upheld and the addition was unsustainable. en-us Tue, 06 Apr 2010 00:00:00 +0530 Tue, 09 Oct 2018 15:35:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=275597 Excise duty on finished goods held in closing stock need not be included in stock valuation where the duty is not yet due and payable under the charging and collection scheme. Although excise duty arises from manufacture, enforceable liability depends on removal of goods and determination of transaction value. Closing stock is valued at cost or market price, whichever is lower, and unrealised or unincurred liabilities are excluded unless legislation mandates inclusion. Section 145A did not apply to the relevant assessment year and, in any event, requires duty actually paid or liability actually incurred. Accounting entries cannot override the statutory position, so the assessee's valuation was upheld and the addition was unsustainable. Case-Laws Income Tax Tue, 06 Apr 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=275597