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2013 (11) TMI 113 - AT - Income TaxDisallowance of Cenvat Credit – unutilized cenvat credit was written off on account of closer of factory - Held that:- The assessee was paying higher rate of excise duty on the raw material purchased by it as against the rate of excise duty applicable on the manufactured items, consequently credit of excise duty was available with the assesse - the assessee closed down its manufacturing unit and consequently the benefit of the CENVAT credit remained un-adjusted - Once the manufacturing unit of the assessee is closed down, the benefit of CENVAT credit not availed of against the excise duty payable on manufactured items, cannot be utilized by the assessee and the write off of CENVAT credit, is allowable as an expenditure in the year under consideration on the closure of the business - The write off of CENVAT credit by the assessee in its books of account is allowable as business expenditure under the provisions of section 37(1) of the Act relatable to the year - The assesse is allowed to claim write off of Cenvat Credit – Decided in favour of assesse.
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