TMI Blog2017 (12) TMI 1665X X X X Extracts X X X X X X X X Extracts X X X X ..... d the above excise duty amount as an advance in its balance sheet’s asset side. Revenue is fair enough in not disputing the fact that it is already entitled to claim 50% of the above excise duty as CENVAT credit. The assessee has admittedly set off its service tax payable to the extent of 50% of the above excise duty. It thereafter has carried forward the remaining amount in the next year - there is no income element embedded therein since the assessee is not entitled to get the same refunded from the government since the same has to be utilized only against the service tax payable. We therefore express our agreement with learned CIT(A)’s conclusion that the above excise duty cannot be added in closing stock value since the assessee run ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the car manufacturer in the sale invoice. The appellant has purchased certain motor cars for carrying out business of Cab Operator and the value of vehicles has been reduced by the appellant by the Excise Duty paid on purchase and has been transferred to a separate account. The appellant was entitled, as per the CENVAT credit rules, to utilize maximum of 50% of Excise Duty. The appellant during the year had transferred 50% of that to the Excise Duty account and same has been utilised against the service tax payable by the appellant on account of letting out cars. The appellant has therefore, explained that the unutilized credit balance in the CENVAT account was fully explained. On a careful consideration of the entire facts of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich can be considered as income of the appellant. The observation of the AO regarding inclusion of unutilised CENVAT credit in the closing stock would be applicable in case of a person engaged in manufacturing and/or purchase and sale of goods. These facts are not applicable in the case of the appellant as the appellant is not in the business of manufacturing and sale of goods. It is in the business of running the cars on hire and therefore, there is no question of maintaining closing stock. The appellant has also explained clearly that it has not included the excise duty component in valuation of the depreciable assets. Accordingly, the judgements in the case of Chowringhee Sales Bureau Pvt. Ltd. 87 ITR 542 and Sinclair Murray Co. Pvt. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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