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2021 (3) TMI 746 - HC - Income TaxAllowable expenditure under Income Tax Act - opening balance in Service Tax Set Off Account (STA) made by the assessee - Tribunal deleted the addition - HELD THAT:- CIT(A) took note of the decision in the case of Girdhar Fibres P. Ltd. Vs. ACIT [2012 (11) TMI 161 - ITAT, AHMEDABAD] wherein, identical issue was decided in favour of the assessee. The Revenue seeks to distinguish the decision in the case of M/s.NCS Distilleries P. Ltd. [2014 (9) TMI 1160 - ITAT HYDERABAD] by referring to certain factual aspects stating that in the said case, the unit had been closed down. However, the said contention sought to be given by the Revenue is not tenable, because the assessee could not have availed the set off on account of operation of law and from the assessment year 2007-08 onwards, Central Excise duty on edible oils were deleted. In the case of M/s. NCS Distilleries P. Ltd., it appears that the union was merged with other company and therefore, the credit remained unutilized. However, this is not a feature to distinguish the said decision. In fact, the Tribunal has taken into consideration as to how the CENVAT Scheme operates and granted relief to the assessee. The Tribunal has once again re-appreciated the factual position and found that the decision in M/s.NCS Distilleries P. Ltd., would fully apply to the case on hand - substantial questions of law are answered against the Revenue.
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