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2016 (7) TMI 591 - AT - Central ExciseCenvat Credit on capital goods - simultaneous availing depreciation - The appellant in the year 2004-05 availed cenvat credit to the tune of 50%, i.e. amounting to ₹ 104828/- and remaining 50% capitalized and claim the depreciation on the total assessable value and 50% of excise duty, i.e. ₹ 104828/-. In the year 2005-06, the appellant reduced an amount of ₹ 104828/- from the capital account and availed cenvat credit of the said amount as remaining 50%. The show cause notice was issued proposing denial of cenvat credit. - Held that:- As per Rule 4(4), it clearly provides that only part of the value of capital goods which represents the amount of duty on such capital goods, which the assessee claimed as depreciation shall not be allowed as cenvat credit. In the present case, the part of the value, which claimed as depreciation, is ₹ 16569/- only. Therefore, to this extent the appellant is not entitle for the cenvat credit, however the remaining amount, i.e. ₹ 88263/- (Rs. 104832-16569/-) is eligible as cenvat credit to the appellant for the reason that in respect of this amount of ₹ 88263/-, depreciation was not claimed. - Decided partly in favor of assessee.
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