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TMI Blog2016 (11) TMI 1285X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the procedure laid under Notification No.214/86-CE dated 25-03-1986 as amended. The respondents imported certain capital goods during the year 2006-07 and used them for the job work and the excise duty on finished goods was paid by M/s Amara Raja Batteries Ltd. Tirupati. From 01-04-2007 the job work was stopped and these machines were used for producing dutiable goods by appellant. 2. In the year of receipt of capital goods ie 2006-07, the respondent did not avail cenvat credit on capital goods. Out of the total cenvatable credit available on capital goods of Rs. 17,07,038/-, the appellants availed income tax depreciation amounting to Rs. 4,74,701/- under Section 32 of the Income Tax Act, 1961. In the subsequent year, they availed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee avails the benefit of depreciation under Section 32 of the IT Act.1961, there is no bar in the said provision for availing the cenvat credit on the balance amount. He submitted that the provision lays down an option to the assessee and it does not prohibit availment of cenvat credit in the subsequent year for balance amount. He explained that the option provided in the section is intended to bar the assessee from availing double benefit by simultaneous availment of benefit of depreciation under IT Act and laso credit under Cenvat Credit Rules, 2004. He submitted that the respondent was eligible for credit on 100% of the duty on capital goods and therefore, the avialement of balance credit of Rs. 12,32,336/- in the subsequent year is fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the preceding financial year computed in the manner specified in the said notification did not exceed rupees four hundred lakhs. (b) The balance of CENVAT credit may be taken in any financial year subsequent to the financial year in which the capital goods were received in the factory of the manufacturer, or in the premises of the provider of output service, if the capital goods, other than components, spares and accessories, refractories and refractory materials, moulds and dies and goods falling under heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 of the 1st schedule of the Excise Tariff Act, are in the possession of the manufacturer of final products, or provider of output service in such subse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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