TaxTMI 
TaxTMI 
2016 (5) TMI 1368
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....peal are general and need no adjudication. 4. On ground No. 2, revenue challenged the order of the ld. CIT(Appeals) in holding that Excise Duty refund of Rs. 1,39,00,952/- received by the assessee constituted a capital receipt not liable to tax. 5. The brief facts of the issue are that assessee had claimed deduction of Rs. 1,39,00,952/- under section 80IB of the Act on Excise Duty received. The Assessing Officer questioned the assessee regarding the said claim. The Assessing Officer was not satisfied with the explanation of the assessee and disallowed deduction under section 80IB of the Act on Excise Duty received. During the course of appellate proceedings, the assessee submitted that deduction under section 80IB is allowable on Exci....
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....nistry of Finance (Department of Revenue) being Notification No. 32 of 1999 and Notification No. 33 of 1999, both dt. 8th July, 1999. In terms of these notifications, a manufacturer is required to first pay the central excise duty and thereafter claim a refund on fulfilment of certain conditions. In the next month, after verification of the claim, the central excise duty so deposited is refunded to the assessee if the conditions laid down in the notifications are fulfilled. In the present case, there is no dispute that the assessee was entitled to the central excise duty refund. 18. The Central Board of Excise and Customs in its Circular dt. 19th Dec., 2002 clarified that the refund is not on account of excess payment of excise dut....
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....fore parting, we want to add that the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Meghalaya Steels Ltd. (supra), copy of which was provided to us by the learned counsel for the assessee during the course of hearing, stating that the issue of excise duty refund has been decided in favour of the assessee in this judgment arising out of the judgment of Gauhati High Court in the case of Meghalaya Steels Ltd. (supra). We observe that in this case before the Hon'ble Apex Court, the only issue decided was in respect of the allowability of transport subsidy, interest subsidy and power subsidy for the purposes of deduction under section 80IB of the Act and not that of excise duty refund. Though no help of the said judgment c....
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....l purchases which was shown separately without deducting the same from the bill. According to him, amount was deducted from the purchases and was shown separately on the credit side of the Profit & Loss Account and since credits relate to material purchases, therefore, assessee is entitled for deduction under section 80IB of the Act. It was submitted that the predecessor of ld. CIT(Appeals) has allowed deduction under section 80IB on similar nature of rebate and discount in the case of sister concern of the assessee in assessment year 2005-06. 9. The ld. CIT(Appeals) found that impugned rebate and discount relates to purchase of material. The assessee has not deducted this amount from the purchases but has shown it separately on credit s....