2007 (6) TMI 50

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....ed order filed by the appellants M/s. Roots Cast Private Limited Unit II. 2. After hearing both sides, the appeal is taken up at the request of the parties after dispensing with predeposit for final disposal. The first appellate authority has affirmed the demand of wrongly availed Cenvat credit to the tune of Rs. 5,87,523/-, penalty of equal amount and interest due on the credit availed. The fa....

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....ty credit which was not availed in the relevant assessment year. The erstwhile Rule 57AC(4) of Central Excise Rules, 1944 which was replaced by Rule 4(4) of CCR, 2002 contained identical provisions. As per his reading of the provisions, the impugned order is not consistent with the statutory provisions and deserved to be set aside. He also relied on the decision of the Tribunal in the case of Supr....

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....goods in the financial year of its receipt and the balance in the subsequent financial years. Rule 4(4) provides that Cenvat credit in respect of capital goods shall not be allowed on that part of its value which the assessee includes in the value of the capital goods for claiming depreciation under Section 32 of the Income Tax Act, 1961. The above provisions do not bar the assessee from claiming ....

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.... appellant from availing depreciation on the balance 50% of the duty, which is not availed as Cenvat credit. As regards the second year, as per Rule 4(2)(b), the appellants availed the Cenvat credit. Cenvat Rule 4(4) makes it clear that Cenvat credit shall not be allowed in respect of that part of the value of Capital goods which represents the amount of duty on such capital goods which the manufa....