https://www.taxtmi.com/caselaws?id=54441 Irregular availment of Modvat credit on capital goods can attract penalty where the assessee's declaration that no depreciation would be claimed under the Income-tax Act is not honoured. On the facts, revised income-tax assessment orders showed withdrawal of depreciation only to a limited extent, and there was no evidence of withdrawal for the balance; this supported a finding that part of the credit was irregularly taken and that the declaration under Rule 57T was misdeclared. The Tribunal decisions cited by the assessee were distinguished on their facts, including one that was only a remand. Penalty was therefore held imposable under Rule 57U(6) and Rule 173Q(1)(bb), but was reduced to Rs. 40,000. en-us Fri, 08 Jul 2005 00:00:00 +0530 Wed, 20 Oct 2010 10:37:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54441 Irregular availment of Modvat credit on capital goods can attract penalty where the assessee's declaration that no depreciation would be claimed under the Income-tax Act is not honoured. On the facts, revised income-tax assessment orders showed withdrawal of depreciation only to a limited extent, and there was no evidence of withdrawal for the balance; this supported a finding that part of the credit was irregularly taken and that the declaration under Rule 57T was misdeclared. The Tribunal decisions cited by the assessee were distinguished on their facts, including one that was only a remand. Penalty was therefore held imposable under Rule 57U(6) and Rule 173Q(1)(bb), but was reduced to Rs. 40,000. Case-Laws Central Excise Fri, 08 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54441