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TMI Blog2017 (7) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... that a Chartered Accountant had certified that the duty burden had not been passed on to customers. The original authority having found that this was not sufficient evidence and the first appellate authority having taken the contrary view that deposit of duty made after clearance was sufficient to establish the incidence of duty having been borne by the assessee, the sole point for determination is the sufficiency of compliance with the requirement to establish that the burden of duty had not been passed on - appeal dismissed - decided against Revenue. - E/85004/2013 - A/87497-87498/17/SMB - Dated:- 23-5-2017 - Shri C J Mathew, Member (Technical) Shri Ashuthosh Nath, Commissioner (AR) for the appellant Ms. Anjali Hirawat, Advo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment and clearance. It is also held that the applicant had discharged its responsibility by furnishing the certificate of Chartered Accountant which, in the absence of any contrary evidence, was sufficient proof in law. 3. It is the contention of Revenue that the amount due should have been shown in the balance sheet under the head of current assets for the periods 2005-06 to 2009-10 when the amounts were paid under protest . It is contended that the amounts had obviously been booked as an expense for the respective years and with that an irrefutable presumption of having passed on the duty burden would arise. It is also argued that with the booking of an expense in the profit and loss account its inclusion in the cost of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l relief in the form of refund. It is also common ground that the respondent had made entries in the books of accounts leading to the inclusion of the disputed amount as receivables in the final accounts pertaining to 2011 and that a Chartered Accountant had certified that the duty burden had not been passed on to customers. The original authority having found that this was not sufficient evidence and the first appellate authority having taken the contrary view that deposit of duty made after clearance was sufficient to establish the incidence of duty having been borne by the assessee, the sole point for determination is the sufficiency of compliance with the requirement to establish that the burden of duty had not been passed on. 5. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal to logic. Notwithstanding the grandiose reference to accounting principles, it must be clearly stated that unless the duty amount has found a place in the account pertaining to cost of manufacture/cost of sales, it can by no stretch, be held to have been incorporated in the price. On the contrary, the booking of such duties in the expense side of the profit and loss account indicates that the burden has been borne by the company. That such a charge has been made on the profits of the assessee, which would otherwise have enhanced the amount available for distribution, is sufficient evidence that it has not been included in the cost of manufacture. No system of accounting would permit the incorporation of an expense item twice. 7. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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