Held that rule\u00a017\u00a0of the\u00a0Customs and Central Excise Duties Drawback Rules, 2017\u00a0provides for refund of excess claim and interest thereon. It is not in the nature of penalty or fine where the rule itself provides for payment of principal as well as interest. Hence, it should not be considered as penalty or fine. Therefore, the interest paid by the assessee towards excess refund of duty drawback was not penal in nature, Explanation 1 to section\u00a037\u00a0would not apply and the assessee was eligible for claiming it as expenditure. Since, the assessee had adjusted the interest paid from the refund of export benefit, it would not affect the profitability of the company.(AY. 2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.37(1) : Business expenditure-Interest paid on excess refund of duty drawback-Not penalty or fine-Allowable as deduction. [S. 37, Expln. 1,145, Customs And Central Excise Duties Drawback Rules, 2017, R. 17] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44638","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bBY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44638"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44638\/revisions"}],"predecessor-version":[{"id":44639,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44638\/revisions\/44639"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}