Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 511 - AT - Central Excise100% EOU - calculation of Central Excise duty and Customs duty on the depreciated value of the capital goods - While computing the depreciation for the last part of the quarter whether the appellant was allowed to avail depreciation only for the part of the quarter or for the entire quarter? HELD THAT:- Explanations to paragraph 8 of the Central Excise notification and paragraph 4 of the Customs Notification clearly state that “for the purpose of computing rate of depreciation for any part of a quarter, a full such quarter shall be taken into account.” The show cause notice and the impugned order relied on CBEC Circular No. 14/2004-Cus. dated February 13, 2004 to hold that the appellant was entitled to take depreciation only for part of the quarter and not for the entire quarter. A perusal of the circular clearly shows that it was not dealing that the question as to how to treat a part of the quarter for the purpose of reckoning the depreciation. The audit team, the show cause notice, the order of the lower authority and the impugned order of the Commissioner (Appeals) have misread this circular to infer that part of the quarter cannot be taken as the complete quarter for the purpose of calculating the depreciation. Clearly such is not the case and the circular does not say so. Even otherwise, the CBEC circular is an administrative order binding on the departmental officer but it cannot prevail over on delegated legislation in the form of an exemption notification. When the notification itself has allowed depreciation for the entire quarter the circular cannot restrict it to part of it. Therefore, the impugned order cannot be sustained. Appeal allowed.
|