2013 (8) TMI 231

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y and also claimed depreciation on the said amount under Income Tax Act. Since the appellant herein, for the period 2001 to 2005, reversed the CENVAT Credit so availed wherein they claimed depreciation under the Income Tax Act and also reversed the interest payable on such amount. The appellant herein had filed revised income tax return for the period 2005-2006, wherein they have added back the depreciation claimed on the capital goods on which CENVAT Credit was availed. Show cause notice was issued for demand of CENVAT Credit so availed, interest thereof and for imposition of penalty. The appellant is contesting the show cause notice before the adjudicating authority. The adjudicating authority, in the adjudication proceedings, confirmed t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ting authority. It is his submission the first appellate authority has enhanced the penalty without any authority of law. He would bring to my notice the judgment of the Hon'ble High Court of Karnataka in the case of Suprajit Engineering 2010 (253) ELT 369 (Kar.) would be covering the issue in their favour. 4. Ld. D.R., on the other hand, would submit that there is no dispute as to the in-eligible CENVAT Credit availed by the appellant during the year 2001-2005, as they have availed CENVAT Credit of Central Excise duty paid on the capital goods while also availing depreciation. It is his submission that imposition of equivalent amount of penalty automatically arises under the provisions Rule 15 (2) of CENVAT Credit Rules, 2004, as the appe....