Case Law Details
CIT Vs M/s Modipon Ltd. (Supreme Court)
Purpose of introduction of Section 43B of the Central Excise Act was to plug a loophole in the statute which permitted deductions on an accrual basis without the requisite obligation to deposit the tax with the State. Resultantly, on the basis of mere book entries an assessee was entitled to claim deduction without actually paying the tax to the State. Having regard to the object behind the enactment of Section 43B and the preceding discussions, it would be consistent to hold that the legislative intent would be achieved by giving benefit of deduction to an assessee upon advance deposit of central excise duty notwithstanding the fact that adjustments from such deposit are made on subsequent clearances/removal effected from time to time.
The above discussions, coupled with the peculiar features of the case, noticed above i.e. consistent practice followed by the assessee and accepted by the Revenue; the decisions of the two High Courts in favour of the assessee which have attained finality in law; and no contrary view of any other High Court being brought to our notice, should lead us to the conclusion that the High Courts were justified in taking the view that the advance deposit of central excise duty constitutes actual payment of duty within the meaning of Section 43B of the Central Excise Act and, therefore, the assessee is entitled to the benefit of deduction of the said amount.
Full Text of the Supreme Court Judgment / Order is as follows:-
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Author Bio
Dear Sir,
We had filed Trans1 form under GST and taken credit lying as on 30.06.2017 Under VAT and EXCISE ( Cenvat & PLA )
The Credit of PLA was Rs 3.22 lakhs. We have received a call from GST Dept that we can’t claim the credit of Rs 3.22 PLA Credit.
According to GST we have to apply for refund and we have to pay the amount utilized with interest
The time period of claiming the PLA refund is up to 30.06.2018 .Confirmation required in this regard.
We have come across a case in court and the comments from KPMG
enclosed.
We need your Guidance How to go about it ?
can we take any benefit reference case of MODIPON
With Warm regards
Ashutosh Sharma