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TMI Blog2017 (4) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... in the client’s account. It is for this reason that CENVAT credit appears on the liability side and this amount was apparently payable to the parties from whom goods were received for job work. According to the ld.CIT(A) the assessee has tried to misrepresent the facts by showing it as liability towards Government. The ld.CIT(A) has rightly observed that liability is not payable and the assessee-company has failed to establish that this liability exists or still payable. After perusal of well reasoned finding of the ld.CIT(A) we see no reason to interfere in it. Hence, the appeal of the assessee is dismissed being devoid of any merit. - Decided against assessee - ITA No.524/Ahd/2014 - - - Dated:- 13-4-2017 - SHRI RAJPAL YADAV, JUDICIAL M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sheet which is a. liability to the govt. of India. The firm has not yet surrendered its excise license and is a statutory obligation to the excise department. Regarding your contention of sold out machineries and closed down of unit it is humbly submitted to you that the company is working during the financial in concern and having turnover from manufacturing activity ofRs.7.18 crore and having plant and machinery worth ₹ 59.06 lacs. The firm given the machineries on rent for only two months to sister concern. While it was free to avail financial benefit in the slack period. Hence the question of writing off the CENVAT credit is totally out of question. Finding of the AO: The reply of the assessed is duly considered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rving as under: 7. The appellant during the course of appellate proceedings explained that though there is no balance as per excise records, the corresponding entry has not been passed by the accountant since A Y 2005-06, due to oversight as a result of which , this entry is continuing . 8. From a perusal of the above facts, it is apparent that the appellant has misrepresented the facts regarding CENVAT credit payable as payable to the Government. The CENVAT credit is receivable from Government and it appears on the asset side of the balance sheet. It does not appear on the liability side of the balance sheet. Since the appellant is a Processing House, goods of its clients are sent to the appellant for the purpose of processing. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... represent as if this liability is payable to the Government. 11 The appellant company was given several opportunities during the appellate proceedings to explain how this liability is payable to the Government but, no explanation was filed. The appellant could not even furnish any reconciliation statement of excise records with appellant Y books of account, which means that the interpretation of the undersigned that this amount was payable to parties whose goods received for job work basis as on 31.03.2005 is correct. 12. Since this liability is no longer payable and the appellant - company has failed to establish that this liability exists or still payable , this amount ought to have been offered for tax by the appellant, u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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