2017 (4) TMI 611

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....e of excise CENVAT Credit. 3. Brief facts of the case are that the assessee has filed its return of income on 30.9.2008 declaring total income at NIL. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed that in Schedule J of balance sheet, the assessee had shown a computation for excise and CENVAT credit of Rs. 12,41,027/-. According to the AO, CENVAT on processed goods are withdrawn from July, 2006 and still the assessee has not offered CENVAT credit for taxation. Therefore, a show cause notice dated 9.8.2010 was issued to the assessee. In reply to the show cause notice, the assessee has submitted a letter dated 16....

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....y withdrawn right from July 2006. Under the circumstances, it is your income being remission of liability on withdrawal of cenvat on processed goods. It was require to be offered for taxation in the A.Y. 2007-08. Moreover this amount/liability not require to be paid to the excise department on surrender of license also. In response of the this letter the assessee has not offered any explanation till date. The silence on the part of the assessee only proves that the assessee has nothing to say in this matter. Moreover it is a fact once the liability to the govt, of India as said by the assessee is over then it is nothing but income of the assessee. Accordingly as discussed above the amount of Rs. 12,41,027/- of Cenvat Credit is disallowed....

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....ted to their account and any CENVAT credit receivable , in respect of goods of client was credited in the client 's account. It is for this reason that the CENVAT credit I appears on the liability side and this amount was apparently I payable to the parties from whom the goods were received for job work. 9. As regards the Excise Department the CENVAT credit availed was utilized as there is no CENVAT receivable or excise payable as per excise records. The CENVAT register filed by the appellant, during the course of appellate proceedings is placed on record. 10. The excise duty on processing was withdrawn from July 2006 and therefore, there are no further entries in this account, Apparently, this amount of Rs. 12,41,027/- was payable to....