Judgment :- N.V. BALASUBRAMANIAN, J. We, while answering the reference on the facts of the case, held that the assessee was following the mercantile system of accounting, and the show-cause notice demanding the excise duty was made demanding a sum of Rs. 5, 75, 000 during the relevant previous year and hence the liability to excise duty accrued during the previous year relevant to the assessment year in question. The Department disallowed the claim on the ground that the date of receipt of the demand notice is not material and disallowed the deduction. We, however, held that the liability arose during the previous year relevant to the assessment year and the answer to the question depended on the facts and circumstances of the case. Consequently, we do not find any reason to grant the necessary certificate for leave to the Supreme Court to the Revenue. The petition is dismissed. The assessee is entitled to cost of Rs. 500.