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TMI Blog2013 (10) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... had written off the stores on the basis of recommendation of expert committee. The stores being day to day consumable materials, write of the same is nothing but revenue expenditure which has to be allowed as revenue expenditure – Decided against the Revenue. - ITA No. 907/Hyd/2012, ITA No. 908/Hyd/2012 - - - Dated:- 1-10-2013 - Shri Chandra Poojari And Shri Saktijit Dey,JJ. For the Appellant : Sri D. Sudhakara Rao For the Respondent : Sri Laxmi Nivas Sharma ORDER Per Chandra Poojari, AM : The above two appeals by the Revenue are directed against the consolidated order of the CIT(A), Guntur dated 30.11.2010 for A.Ys. 2005-06 and 2006-07. Since the issues involved are common in nature, these appeals are clubbed togethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate for dutiability, the relevant date for the duty liability, is the date on which the goods are cleared. In other words, in respect of excisable goods manufacture and lying in stock, the excise duty liability will get crystallized on the date of clearance of goods and not on the date of manufacture. We find that, in the case under consideration, the liability for excise duty did not crystallize, the provisions of section 145A are not applicable to assessee's case. Therefore, we find no infirmity in the order of the CIT(A) in directing the AO to delete the addition made towards variation in the valuation of closing stock. Accordingly, the grounds raised by the revenue are dismissed." 4. In view of the above order, we are inclined to conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration, the plant has not started any commercial production because of two reasons: 1. Non availability of adequate and sustained power from the state Electricity Board 2. Non viability from economic angle on, account of free availability of high grade pig iron both from domestic manufacturers as well as by way of imports. So, after trial production the very idea of producing pig iron out of sponge iron was abandoned completely without there being any future prospects in this respect. There is no intention of prospective production of pig iron in future. Being so, there is no merit in the argument of the assessee counsel that the SAF plant was kept ready for use. Regarding various case laws relied by the assessee counsel, we are of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss a/c for the A.Y. 2005-06 is Rs. 20,05,000, out of which the AO treated Rs 11.44 lakhs as revenue expenditure and observed that the balance of Rs. 8,61,000 as capital expenditure. The assessee submitted that the details of the stores written off are available before the AO and the AO might be of the view that the items (a) Damaged stores in items of SAF plant at Rs. 2.06 lakhs and (b) SAF plant items deteriorated at Rs. 3.01 lakhs represent capital items. It was submitted that the above items are not capital in nature. What were written off are stores items of SAF Plant. The consumable stores are the revenue items and not capital items. The consumable items have been written off as there is no value for the same or there is reduction in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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