Excise Duty Refund Under Kutch Earthquake Relief Scheme Ruled Capital Receipt, Not Taxable Per Notification 39/2001.

ITAT determined that excise duty refund received under Notification No.39/2001 Central Excise, issued as part of earthquake relief incentive scheme for Kutch District, Gujarat, constitutes a capital receipt. Following precedent established in prior rulings (2005-06 and 2006-07), the Tribunal maintained that such refunds, granted as disaster relief incentives, retain capital character and are not subject to taxation. Considering the scheme's objective of rehabilitation post-devastation, the refund represents a capital inflow rather than revenue receipt. Appeal allowed, confirming the non-taxable nature of the excise duty refund as capital receipt. .....

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