Cenvat credit on reversed depreciation claim required proof, and absence of evidence led to remand for fresh consideration

Cenvat credit under Rule 57-R depended on proof that depreciation earlier claimed under the Income-tax Act had been reversed. The authorities found no documentary evidence supporting that reversal, so the claimed benefit could not be sustained on the existing record. Because the relevant material had not been properly examined, the matter was sent back for fresh consideration by the adjudicating authority, with both sides to be given a reasonable opportunity to place records and be heard. The impugned order was set aside and the case remanded for a new decision on the evidence.

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Issues: Whether the assessee was entitled to the benefit of Cenvat credit under Rule 57-R on the basis that depreciation earlier claimed under the Income-tax Act had been reversed, and whether the matter required remand for want of proof of such reversal.

Analysis: The appeal turned on the absence of documentary proof supporting the assessee's claim that the depreciation initially claimed had been reversed. In the absence of such material before the authorities below, the benefit of the earlier finding could not be sustained. Since the relevant evidence had not been properly examined, the matter was sent back for reconsideration by the adjudicating authority after allowing both sides a reasonable opportunity to place their materials on record and be heard.

Conclusion: The impugned order was set aside and the matter was remanded for fresh decision.

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