Cenvat Credit on capital goods if depreciation is claimed under incometax

[sankunni krishnan]

Sir,My client has claimed cenvat credit on capital goods.By mistake the have provided depreciation also.The Audit Officers are insisting to pay back cennvat credit  before finalising the audit and before issuing ythe audit report to avoid penalty.Is there any caselaws that abandoning depreciation by filing revised excise return and stick to retaining of cenvat credit on capital goods to minise the loss?

AI Summary

Cenvat credit on capital goods disallowed when depreciation is claimed; revising income tax return can restore credit eligibility.
Cenvat credit on capital goods is disallowed to the extent depreciation is claimed under the Income tax Act; audit objections and repayment demands follow. Withdrawing the depreciation claim by filing a revised income tax return and informing excise authorities is a procedural remedy that may permit retention of CENVAT credit, supported by tribunal decisions cited as precedent.