Cenvat Credit on Capital Goods if depreciation is claimed under Income Tax, Central Excise

[Laxmaiah Vanamamula]

Dear sir, we have claimed cenvat credit on capital goods.By mistake we have provided depreciation also in Fy 2010-11 fr above and the same was deducted in the asset block in FY 2011-12.

the Audit officers are asking/insisting Pay back cenvat credit amount along with intest and penal under section 11A(6) of Central excise Act 1944

so, please suggest me, what we can do?

Thanking you sir,

V.Laxmaiah

Posts / Replies

[Pradeep Khatri]

Reverse the CENVAT credit, pay the statutory interest and penalty.

[dipsang vadhel]

Both Depriciation ( on amount of Taxes for which you have claimed CENVAT)and CENVAT credit can not be claimed at the same time. reverse the CENVATcredit and pay the statutory interest and penalty.