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2010 (3) TMI 414 - HC - Central ExciseCenvat Credit- Respondent-assessee, engaged in the manufacture of excisable goods and respondent is availing Cenvat Credit of duty paid on inputs/capital goods. During 2000-01 assessee purchased capital goods and availed 50% of Cenvat credit on capital goods as per the prevailing rules and it had also availed depreciation under Sec.32 of IT Act in respect of the remaining 50% of Cenvat credit which was not availed by it . For the next financial year on the un-availed 50% claimed benefit. Revenue having noticed that the assessee claiming depreciation under the Income Tax Act and also availing Cenvat credit in respect of un-used 50% in the previous year, issued a show cause notice calling upon the respondent-assessee to pay duty and also to pay interest and penalty. Tribunal allowed assessee’s appeal. Held that-Tribunal Committed serious error in not considering Rule 4(4) and without considering how benefit of depreciation u/s 32 of IT Act and benefit of Cenvat Credit in subsequent year available. Thus question answered in favour of revenue.
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