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2018 (3) TMI 1976 - ITAT KOLKATADeduction u/s 80IC - excise duty refund claiming allowance u/s 80IC - HELD THAT:- Issue is covered in assessee’s own case for A.Y 2005-06 [2012 (4) TMI 802 - ITAT KOLKATA] held that 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 give by the notifications. 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. Even assuming the refund does amount to income in the hands of the assessee, it is a profit or gain directly derived by the assessee from its industrial activity. The payment of Central Excise duty 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. Therefore, an inextricable link between the manufacturing activity, the payment of Central Excise duty and its refund. - Decided against revenue.
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