TMI Blog2022 (3) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... of set off against Excise Duty payable on manufactured items. The assessee increases the value of the purchases in respect of duty paid in the form of AED but the same could not be adjusted against the CENVAT rules because on the finished goods only the basic duties levied. Therefore, the difference of loss incurred on account of rate differential between input and output Excise Duty is allowed to be claimed as business expenditure. This is generally a regular practice in the manufacturing sector which is also followed by the assessee from year to year. CENVAT credit receivables which could not be set off has been rightly claimed by the assessee as deduction. Appeal of assessee allowed. - ITA No. 2038/Del/2018 - - - Dated:- 17-3-2022 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the same was recoverable from customers on sales and balance, if any, charged by the suppliers was considered as recoverable from the Government. The assessee further submitted that the balance remaining after recovery from customers was neither refunded by the Government nor there was any hope of getting it back from the Government and therefore, the same was written off, being revenue in nature. 5. The Assessing Officer held as under: The assessee has itself stated that the Excise duty has not been charged to the purchase account. Further the assessee has also failed to fi le any evidence with regard to the fact that this Excise recoverable amount of ₹ 7,84,058/- was ever credited to the P L account. No evidence with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase of raw material and claims benefit of set off against Excise Duty payable on manufactured items. The assessee increases the value of the purchases in respect of duty paid in the form of AED but the same could not be adjusted against the CENVAT rules because on the finished goods only the basic duties levied. Therefore, the difference of loss incurred on account of rate differential between input and output Excise Duty is allowed to be claimed as business expenditure. This is generally a regular practice in the manufacturing sector which is also followed by the assessee from year to year. The CENVAT credit receivables which could not be set off has been rightly claimed by the assessee as deduction. 8. In the result, the appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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