ITAT Mumbai in Sunshield Chemicals held that inclusive method of valuation u/s 145A introduced by Finance Bill 1998 wef AY 1999-2000 is not relevant under present regime of indirect taxes and under likely roll out of GST. ITAT also held that only basic customs duty and central sales tax on which credit is not allowed can be said to paid or incurred to bring the inventory to its present location and condition. All other indirect taxes including Vat are more of in nature of current assets to be set off against excise duty/vat payable can be again added to inventories because Supreme Court in Eicher Tractors has held that credit of duty once awarded can not be effaced. Further ITAT following SC in Indo Nippon 261 ITR 275 has said that trading results both for inclusive and exclusive methods shall be same. Comments : Punjab and Haryana High Court in Avery Cycle Indus Ltd. [07-01-2015] has upheld the same view.

Valuation of stock at 10% of cost held justified which was sold at 8.43% of cost

Wolkem India Ltd. (2009) 18 DTR 190 / (2009) 221 CTR 767 (Raj)

Excise duty not to be included in value of stock

Supreme Court [2012] 26 taxmann.com 331 (SC) SEPTEMBER 19, 2012
Section 145 of the Income-tax Act, 1961 - Method of accounting - Valuation of stock - Excise duty - Assessment years 1995-96 and 1997-98 - Whether where assessee is following net method of valuation of closing stock, excise duty is to be excluded from value of closing stock of finished goods at end of accounting period - Held, yes [Para 5] [In favour of assessee]
The judgement of the Bombay High Court in the case of CIT v. Indo Nippon Chemical Co. Ltd. [2000] 245 ITR 384/112 Taxman 555 squarely applies to this case and the same has been affirmed by this Court, which is reported in CIT v. Indo Nippon Chemicals Co. Ltd.[2003] 261 ITR 275/130 Taxman 179 (SC)