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2021 (6) TMI 259 - AT - Central ExciseCalculation of depreciation of capital goods for reversing the credit - whether the straight line method or the written down value method has to be adopted for calculating the depreciation? - HELD THAT:- It is seen that the Commissioner (Appeals) has directed to calculate the depreciation by giving an overall limit of 70%. The appeal was only with regard to the question as to whether the straight line method or the written down value method has to be adopted for calculating the depreciation. In such circumstances, when both sides did not have any contentions as to the rate of 2.5% applied, the Commissioner (Appeals) ought not to have given any direction to calculate the depreciation by subjecting it to a cap of 70%. The Tribunal in the case of SIDDHARTH POLYSACKS PVT. LTD. VERSUS COMMR. OF C. EX. & SERVICE TAX, JAIPUR-I [2015 (12) TMI 70 - CESTAT NEW DELHI], on the very same issue of the method that has to be adopted for calculation of depreciation prior to 27.02.2010, has held that the straight line method has to be adopted. The duty has to be determined by applying 2.5% per quarter and calculating depreciation adopting the straight line method - the matter is remanded to the Original Authority, who shall calculate the depreciation adopting the straight line method - Appeal allowed by way of remand.
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