https://www.taxtmi.com/caselaws?id=58028 Excise duty paid on inputs forms part of inventory cost when closing stock is valued on the cost method, because MODVAT credit does not arise as an immediate rebate on purchase but crystallises only when the inputs are used in manufacture. On that basis, closing stock may be taken inclusive of duty, with the corresponding credit carried forward through opening stock in the next year. The matching adjustment preserves profit neutrality, so no addition is warranted merely on the ground that the inputs were valued at cost inclusive of duty. en-us Fri, 31 Jul 1992 00:00:00 +0530 Wed, 15 Dec 2010 18:49:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58028 Excise duty paid on inputs forms part of inventory cost when closing stock is valued on the cost method, because MODVAT credit does not arise as an immediate rebate on purchase but crystallises only when the inputs are used in manufacture. On that basis, closing stock may be taken inclusive of duty, with the corresponding credit carried forward through opening stock in the next year. The matching adjustment preserves profit neutrality, so no addition is warranted merely on the ground that the inputs were valued at cost inclusive of duty. Case-Laws Income Tax Fri, 31 Jul 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58028