15 September 2008
Whether preferential recovery of statutory dues in case of loss making company is correct. For e.g.:- A company has made loss in any particular year. They have deposited excise duty @ Rs. 200 pt. in advance.
Cost of Production Rs. 800 pt Excise Rs. 200 pt
Total Cost Rs.1000 pt
But they have recovered only Rs. 700 pt for these goods from consumers.
Therefore company has claimed refund of excise duty from Government but they have rejected company’s claim. Contention of the company is that even they have not recovered cost of production from these goods so how can they recover Excise duty from consumers. Whether the contention is correct or not, if your opinion is in our favour of the company then please suggest the valid grounds for this and if mentioned in law then please provide details.
CAclubindia
