https://www.taxtmi.com/caselaws?id=327292 An assessee that had initially claimed both depreciation on machinery duty component and Modvat credit, but later withdrew the depreciation claim through revised returns and rectification, could not be denied Modvat credit on that basis. The court treated the attempted denial as punitive because the inconsistency had been corrected and the object of Modvat credit is not to penalise a rectified mistake. It also noted that entitlement to Modvat credit from a later date had been recognised by the original authority and could not be disturbed adversely without a corresponding departmental challenge. The recovery demand was therefore held unsustainable. en-us Fri, 05 Feb 2016 00:00:00 +0530 Sat, 12 Nov 2016 10:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=327292 An assessee that had initially claimed both depreciation on machinery duty component and Modvat credit, but later withdrew the depreciation claim through revised returns and rectification, could not be denied Modvat credit on that basis. The court treated the attempted denial as punitive because the inconsistency had been corrected and the object of Modvat credit is not to penalise a rectified mistake. It also noted that entitlement to Modvat credit from a later date had been recognised by the original authority and could not be disturbed adversely without a corresponding departmental challenge. The recovery demand was therefore held unsustainable. Case-Laws Central Excise Fri, 05 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=327292