https://www.taxtmi.com/caselaws?id=60021 Exemption from excise duty on finished jute products does not, by itself, justify a full deduction for unutilised MODVAT credit. Where MODVAT credit had already been reflected in earlier years by reducing input cost and asset cost, the accounting must still be aligned to true profit measurement. The credit relatable to inputs is to be carried into opening stock, and the credit relatable to machinery is to be added to the depreciable cost of the assets. The operative effect is limited relief through appropriate accounting adjustments, rather than allowance of the entire written-off amount. en-us Wed, 25 Feb 2004 00:00:00 +0530 Mon, 03 Jan 2011 12:58:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60021 Exemption from excise duty on finished jute products does not, by itself, justify a full deduction for unutilised MODVAT credit. Where MODVAT credit had already been reflected in earlier years by reducing input cost and asset cost, the accounting must still be aligned to true profit measurement. The credit relatable to inputs is to be carried into opening stock, and the credit relatable to machinery is to be added to the depreciable cost of the assets. The operative effect is limited relief through appropriate accounting adjustments, rather than allowance of the entire written-off amount. Case-Laws Income Tax Wed, 25 Feb 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60021