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TMI Blog2022 (9) TMI 1329X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-2012. The following substantial questions of law arise for consideration in this appeal: i) Whether on the facts and in the circumstances of the case the learned Tribunal was justified in law in deleting the additions made by the Assessing Officer under Section 80-IC of the said Act on Government subsidy and Excise Duty refund of Rs.8,64,029/- by relying upon a judgment of the Hon'ble Gauhati High Court in the case of Meghalaya Steel Limited reported in 332 ITR 91 despite the fact that the Excise Duty refund does not form part of net profit of eligible industrial undertaking for the purpose of Section 80-IC in the light of the judgment of the Hon'ble Apex Court in the case of Liberty India -vs- CIT reported in 183 Taxman 349? ii) Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty refund. 19. The Central Board of Excise and Customs in its circular dated 19-12-2002 clarified that the refund is not on account of excess payment of excise duty but is basically designed to give effect to the exemption and to operationalise the exemption given by the notifications. In that sense, the Central excise duty refund does not appear to bear the character of income since what is refunded to the assessee is the amount paid under the modalities provided by the Department of revenue for giving effect to the exemption notifications. There is also nothing to suggest that the assessee has recovered or passed on the excise duty element to its customers. 20. Even assuming the refund does amount to income in the hands of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the New Industrial Units and Substantial Expansion of the existing units, was the generation of employment through acceleration of industrial development, to deal with the social problem of unemployment in the State, additionally creating opportunities for self employment, hence a purpose in Public Interest. 30) For all what has been said above, the finding of the Tribunal on the first issue that the Excise Duty Refund, Interest Subsidy and Insurance Subsidy were Production Incentives, hence Revenue Receipt, cannot be sustained, being against the law laid down by Hon'ble Supreme Court of India in Sahney Steel and Ponni Sugars cases (supra)." The appeal filed by the revenue against the decision in the case of Shree Balaji Alloys in C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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