MARUTI SUZUKI INDIA LTD. versus COMMISSIONER OF INCOME TAX, DELHI

MARUTI SUZUKI INDIA LTD. versus COMMISSIONER OF INCOME TAX, DELHI

Unutilised MODVAT credit as on 31.03.1999 is not a sum payable by the assessee by way of tax, duty or cess under Section 43B and therefore is not deductible under Section 43B; the sales tax recoverable amount similarly does not qualify; the proviso to Section 43B does not apply because the liability to pay excise duty in respect of the finished goods was incurred in the subsequent year.

Parties
Appellant / Assessee: Maruti Suzuki India Ltd. (Earlier known as Maruti Udyog Ltd.); Respondent / Revenue: Commissioner of Income Tax, Delhi
Jurisdiction
India
Judgment Date
07 February 2020
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal
Outcome
Appeals dismissed
Legal Topics
Section 43 B Deductions, MODVAT Credit, Sales Tax Recoverable, Proviso to Section 43 B, Allowable Deductions Under Income Tax
Income Tax Act, 1961 Central Excise Act, 1944 Central Excise Rules, 1944 Section 43 B Deductions MODVAT Credit Sales Tax Recoverable Proviso to Section 43 B Allowable Deductions Under Income Tax

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Parties

Maruti Suzuki India Ltd. (Earlier known as Maruti Udyog Ltd.)

Appellant / Assessee

Commissioner of Income Tax, Delhi

Respondent / Revenue

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal

Legal Issues

  1. 1 Whether unutilised MODVAT credit as on 31.03.1999 qualifies as a deduction under Section 43B of the Income Tax Act
  2. 2 Whether sales tax recoverable amount is allowable as deduction under Section 43B
  3. 3 Whether proviso to Section 43B applies where unutilised MODVAT credit was utilised after year end but before return filing date

Ratio Decidendi

Unutilised MODVAT credit as on 31.03.1999 is not a sum payable by the assessee by way of tax, duty or cess under Section 43B and therefore is not deductible under Section 43B; the sales tax recoverable amount similarly does not qualify; the proviso to Section 43B does not apply because the liability to pay excise duty in respect of the finished goods was incurred in the subsequent year.

Court Disposition

Appeals dismissed

Orders

  • Appeals dismissed by the Supreme Court
  • High Court judgment affirmed