Simultaneous Cenvat credit and depreciation on the same capital goods was found impermissible, and remand was unnecessary.

Simultaneous availment of Cenvat credit on capital goods and depreciation under the Income-tax Act is treated as impermissible where depreciation is claimed under Section 32 on the same goods. The record noted that the adjudicating authority had already examined the revised returns and the declaration under Rule 4(4) of the Cenvat Credit Rules, 2002, so a remand based only on the filing of revised returns was unnecessary. The original adjudication was restored, and the demand sustained by that order remained in force on the Revenue's side.

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Issues: Whether simultaneous availment of Cenvat credit on capital goods and depreciation under the Income-tax Act barred the assessee from retaining the credit, and whether the Commissioner (Appeals) was justified in remanding the matter on the basis of revised income-tax returns.

Analysis: The record showed that the adjudicating authority had already examined the revised returns and the declaration made under Rule 4(4) of the Cenvat Credit Rules, 2002. The remand ordered by the Commissioner (Appeals) rested only on the supposed filing of revised returns, without disturbing the factual findings already recorded. The governing principle applied was that an assessee cannot claim depreciation under Section 32 of the Income-tax Act, 1961 in respect of the same capital goods on which Cenvat credit is claimed. On the facts, the earlier order had properly dealt with the relevant materials, and the remand on this issue was unnecessary.

Conclusion: The remand on the issue of simultaneous availment of Cenvat credit and depreciation was set aside, the original adjudication order was restored, and the demand sustained by that order was upheld in favour of the Revenue.

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