Judgment

S.H. KAPADIA, J. - A short question which arises for determination in this civil appeal is whether ITAT was justified in law, on the facts and circumstances of this case, in holding that the method adopted by the assessee for valuation of closing stock of "zinc concentrate" at the international rate, was in order, particularly when there was no export during the financial year ending 31 - 3 - 1996 and particularly when in the past the assessee has been valuing the closing stock of zinc concentrate for captive consumption at the weighted average cost. The facts giving rise to this civil appeal briefly are as follows.

2. At the relevant time the respondent assessee was a government company. In this civil appeal we are concerned with Assessment Year 1996 - 97. The assessee was engaged in the business of producing zinc concentrate which was uti Ii sed by the assessee captively. During Assessment Year 1996 - 97, zinc concentrate got accumulated to the extent of 84,000 metric tonnes (approximately). It was not possible to consume the said quantity as the accumulated stocks contained low metal content and high impurity level of silica. Further, no other plant in India had the abi