Excise duty Refund eligible for deduction u/s. 80IB(1)

ACIT vs. The Total Packaging Services (ITAT Mumbai)–  The payment of Central excise duty has a direct nexus with the manufacturing activity and similarly, the refund of the Central excise duty also has a direct nexus with the manufacturing activity. The issue of payment of Central excise duty would not arise in the absence of any industrial activity. There is, therefore, an inextricable link between the manufacturing activity, the payment of Central excise duty and its refund. So Assessee is eligible to deduction u/s. Sec. 80IB(1) on Excise Duty Refund/Modvat Credit.

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI ‘E’ BENCH 

MUMBAI BENCHES, MUMBAI

BEFORE SHRI B RAMAKOTAIAH, AM & SHRI VIJAY PAL RAO, JM

ITA No. 5364/Mum/2009

(Asst Year= 2006- 07)

PER VIJAY PAL RAO, JM

This appeal by the revenue is directed against the order dated 16.7.2009 of the CIT(A) for the Assessment Year 2006-07.