Caliming of cenvat with a view of provisons of Rule 4(4)

[Guest]

please clarify the provisions of Rule 4(4) of Cenvat Credit Rule, 2004 w.r.t. the following example: Cost of Asset=100 (basic) Excise on above=16 Cenvat Claim in first year=50% of 16=8 Depreciation claimed in first year=100*15%=15 How much Cenvat can be claimed in the first year and second year keeping in view the provisons of Rule 4(4)

AI Summary

Understanding Cenvat Credit Claims Under Rule 4(4): Rs. 8 in Year One, Rs. 8 in Year Two Explained A discussion forum user inquired about the provisions of Rule 4(4) of the Cenvat Credit Rule, 2004, using an example involving asset cost and excise duty. The query sought clarification on how much Cenvat credit could be claimed in the first and second years. The response clarified that since no depreciation was claimed on the Cenvat credit portion, the user could claim Rs. 8 in the first year and the remaining Rs. 8 in the second year.