https://www.taxtmi.com/caselaws?id=61492 Section 43B allows deduction of specified statutory dues on actual payment basis, overriding the mercantile method under section 145(1), so advance deposits made into the excise account-current were treated as real payment because the funds were paid into the Government treasury and were not freely available to the assessee. Unutilised Modvat credit, however, was held to be only a future entitlement and not payment of Central Excise duty until it is actually adjusted against duty liability. The legal position is that statutory dues are deductible only on actual payment, while mere availability of credit does not satisfy section 43B. en-us Fri, 20 Jul 2007 00:00:00 +0530 Sat, 25 May 2024 12:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61492 Section 43B allows deduction of specified statutory dues on actual payment basis, overriding the mercantile method under section 145(1), so advance deposits made into the excise account-current were treated as real payment because the funds were paid into the Government treasury and were not freely available to the assessee. Unutilised Modvat credit, however, was held to be only a future entitlement and not payment of Central Excise duty until it is actually adjusted against duty liability. The legal position is that statutory dues are deductible only on actual payment, while mere availability of credit does not satisfy section 43B. Case-Laws Income Tax Fri, 20 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61492