TMI Blog2021 (6) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... tions 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 allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de Order-in-Appeal No. 57/2010 dated 26.02.2010, the Commissioner (Appeals) remanded the matter to the Adjudicating Authority to re-quantify the liability, directing that the demand has to be calculated on the depreciated value of the capital goods. Against such order, the appellant as well as the Department filed appeal before the Tribunal at Chennai and vide Final Order Nos. 40024 to 40025 of 2018 dated 04.01.2018, the Order passed by the Commissioner (Appeals) was upheld. 3.1 As per the remand order of Commissioner (Appeals), as upheld by the Tribunal, the matter was taken up by the Original Authority. In such de novo proceedings, the Original Authority considered whether the straight line method or the written down value method has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dopted, but for applying the written down value method instead of the straight line method. The Commissioner (Appeals) held that the rate of 2.5% adopted is wrong and also gave direction as to the maximum value as to which the depreciation can be allowed. That the Commissioner (Appeals) has thus gone beyond the scope of the appeal grounds so as to put the appellant in an adverse situation. She relied upon the decision of the Hon ble High Court of Madras in M/s. Servo Packaging Ltd. v. CESTAT, Chennai reported in 2016 (340) E.L.T. 6 (Mad.) to argue that an Appellate Authority cannot go beyond the scope of appeal and pass an order adverse to the interests of the appellant so as to put it in a worse situation than the order under challenge in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order, the operative portion of the order reads as under: The Order-in-Original No. MDU-CE-JC-23-18 dated 20.02.2018 passed by the Joint Commissioner of GST Central Excise is set aside and the matter is remanded back to the Original Adjudication Authority for the limited purpose of passing orders after re-quantification of the Credit to be reversed as set out in Para 6(g) 6(h) and the recomputed amount to be reversed/paid should not exceed the amount demanded in the notice for the period January, 2007 to September, 2007. The demand for the period upto December, 2006 is set aside as time barred. The interest payable on the recomputed duty liability will sustain. The appeal in A. No. 16/2019 is disposed of accordingly. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding application of such principle the controversy may be resolved. It appears that by this process there may not be much Revenue implication to cause prejudice to Revenue. Further, if straight line method is followed, in what way Revenue may be prejudiced has not been brought out in the order. Therefore, following straight line method does not appear to be illogical. Accordingly, appeal is allowed. The Division Bench of the Tribunal in the case of M/s. Navin Fluorince International Ltd. (supra) has also taken a similar view. 10. After perusal of records and also following the decisions stated above, I am of the view that the duty has to be determined by applying 2.5% per quarter and calculating depreciation adopting the straight l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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