9911796707
TMI Blog2025 (1) TMI 1438X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Tribunal dismissed the appeal of the appellant holding that the appellant is not entitled to benefit of CENVAT Credit. 2. The brief facts of the case, as per Order-in-Original, are that the appellant is the manufacturer of Engineering Plastic Components and was availing facility of CENVAT Credit under CENVAT Credit Rules; 2002/2004. 3. During the course of audit of the financial and excise records of the assessees, it was noticed by the Audit party, that the assessees had availed of CENVAT Credit amounting to Rs. 2,78,012/- of duty paid on Capital Goods and at the same time, claimed depreciation of this part of value of capital goods which represents the amount of duty on such capital goods under Section 32 of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the appellant, who filed response to the same and after giving him personal hearing, the CENVAT credit amounting to Rs. 2,88,779/- (Rupees Two Lac Eighty Eight Thousand Seven Hundred and Seventy Nine Only) availed by the assessee was disallowed under Rule 14 of the CENVAT Credit Rules, 2004 read with Section 11A of the Act, 1944. Further, penalty to the tune of Rs. 2,88,779/- under Section 11 AC of the Act, 1944 read with Rule 15 (2) of the CENVAT Credit Rules, 2004 was imposed in Order-in-Original by the Assistant Commissioner on 26/31.12.2007. 6. The appellant preferred appeal against order dated 26/31.12.2007 before the Commissioner of Central Excise (Appeals), whereby learned Commissioner (Appeals) modified the impugned Order-in- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed in respect of that part of the value of capital goods which represents the amount of duty on such capital goods, which the manufacturer claims as depreciation under Section 32 of the Income-tax Act, 1961 (43 of 1961)." 11. The admitted fact on record is that the appellant availed CENVAT Credit on capital goods to the tune of Rs. 6,36,381 in the year 2001-02 and Rs. 2,25,141/- during the year 2002-03. During the course of audit of the financial and excise records of the appellant conducted by Central Excise audit team, it was observed by the audit party that the assessee had simultaneously claimed the benefit of depreciation on the capital goods in their financial accounts as well as Income Tax returns for the relevant years. And admi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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