https://www.taxtmi.com/caselaws?id=120868 Rule 4(2) of the Cenvat Credit Rules allows only 50% of the duty on capital goods to be taken as credit in the year of receipt, with the balance available in a later year if the goods remain in use. Rule 4(4) bars Cenvat credit only for the same duty component on which depreciation is claimed under section 32 of the Income-Tax Act. Where the assessee took credit only on the first 50% and claimed depreciation only on the unavailed balance, the rule was not breached. The document states that depreciation may be claimed on the portion of duty not taken as credit, and that adverse demand, interest and penalty orders could not stand. en-us Wed, 08 Nov 2006 00:00:00 +0530 Wed, 14 Feb 2024 12:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120868 Rule 4(2) of the Cenvat Credit Rules allows only 50% of the duty on capital goods to be taken as credit in the year of receipt, with the balance available in a later year if the goods remain in use. Rule 4(4) bars Cenvat credit only for the same duty component on which depreciation is claimed under section 32 of the Income-Tax Act. Where the assessee took credit only on the first 50% and claimed depreciation only on the unavailed balance, the rule was not breached. The document states that depreciation may be claimed on the portion of duty not taken as credit, and that adverse demand, interest and penalty orders could not stand. Case-Laws Central Excise Wed, 08 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120868