Sales tax incentive have direct nexus with the manufacturing activity, Commission paid to related parties at rates higher then unbrelated parties not allowable

M/s Diamond Tool Industries Vs.  JCIT (ITAT Mumbai)-  Gauhati High Court in the case of Meghalaya Steels Ltd. (supra) after considering the decision of Honourable Supreme Court in the case of Liberty India (supra) has held that Central Excise Duty has a direct nexus with the manufacturing activity and similarly the refund of the Central Excise duty also had 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.

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