2014 (6) TMI 940

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....isable goods, namely, sugar, molasses and ethyl alcohol. During scrutiny of records some time in the year 2004 in the course of audit, it was noticed that the appellant-assessee availed Cenvat credit of Rs. 11,42,421/- in the year 2001-2002 being 50% Cenvat credit available on capital goods procured during the year 2000-01 and Rs. 5,62,089/- in the year 2002-03, being 50% credit available on capital goods procured during the year 2001-02. From the Tax Audit Report, balance sheet, depreciation statement and other relevant records it was further observed that while claiming depreciation on plant and machinery under Income Tax Act for the years 2000-01 and 2001-02 the appellant reduced only 50% of duty element (i.e. on which the appellant clai....

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.... to reduction of Cenvat credit availed under the Cenvat Credit Rules. However, on being pointed out by the audit they had immediately, without protest, reversed the entire amount of credit availed by it by reverse entry being debit entry No. 8, dated 7-6-2004. There is no contumacious conduct or fraud or any activity in disregard to the provisions of law on its part. The adjudicating authority confirmed the proposed demand and observed that as seen from the tax audit report/balance sheet and depreciation statement along with other records, the assessee while claiming depreciation of plant and machinery claimed excess amount of Cenvat credit and have contravened Rule 4(4) of Cenvat Credit Rules. The credit availed on capital goods become ina....