TMI Blog2009 (4) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... the rate of excise duty rebate” held that the incentives given by the Government in the form of higher free sugar were given exclusively for the purpose of repayment of loan borrowed for the purpose of meeting part of the capital cost from financial institutions and therefore were not revenue receipts - Both these receipts are capital in nature and therefore not to be treated as income liable to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee sugar is capital receipt and not taxable ? 2. Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that receipt from concession in the rate of excise duty rebate is capital receipt and not taxable?" 2. The assessee is a co-operative Society engaged in manufacture and sale of sugar. As regards the assessability of receipts on account of hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. Aggrieved by that order, the present tax case appeals are filed. 3. We heard the arguments of the learned counsel for the revenue and perused the materials available on record. 4. Learned counsel appearing for the revenue submitted that the issue involved in this case has already been decided by this court in the case of Chengalrayan Co-operative Sugar Mills Ltd., Vs. Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t excise duty on the sale price of free sale sugar in excess of normal quota but to pay to the Government only the excise duty payable on the price of levy sugar were incentives given exclusively for the purpose of repayment of loan borrowed for the purpose of meeting part of the capital cost from financial institutions and therefore were not revenue receipts. 6. The Supreme Court in the late ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
