https://www.taxtmi.com/caselaws?id=1981 Depreciation under the Income-tax Act was held permissible on the portion of duty paid on capital goods for which Cenvat credit was not availed, because Rule 4(4) of the Cenvat Credit Rules, 2002 bars depreciation only to the extent the value of the capital goods is actually included for depreciation. Rule 4(2)(a) allows only 50% credit in the year of receipt, with the balance available later, and there is no prohibition against claiming depreciation on the unavailed portion in the relevant year. The earlier Rule 57AC(4) was treated as having the same effect, so the demand was unsustainable and the assessee's claim succeeded. en-us Fri, 15 Jun 2007 00:00:00 +0530 Tue, 15 Apr 2008 12:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1981 Depreciation under the Income-tax Act was held permissible on the portion of duty paid on capital goods for which Cenvat credit was not availed, because Rule 4(4) of the Cenvat Credit Rules, 2002 bars depreciation only to the extent the value of the capital goods is actually included for depreciation. Rule 4(2)(a) allows only 50% credit in the year of receipt, with the balance available later, and there is no prohibition against claiming depreciation on the unavailed portion in the relevant year. The earlier Rule 57AC(4) was treated as having the same effect, so the demand was unsustainable and the assessee's claim succeeded. Case-Laws Central Excise Fri, 15 Jun 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1981