2014 (6) TMI 940

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....ne, for the Assessee. ORDER These cross appeals arise out of Order-in-Appeal No. RKR(115)213/06, dated 5-3-2008 passed by the Commissioner of Central Excise & Customs (Appeals), Aurangabad. 2. The brief facts are that the appellant-assessee is a sugar factory in cooperative sector manufacturing excisable goods, namely, sugar, molasses and ethyl alcohol. During scrutiny of records some time....

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....Since the appellant claimed depreciation on balance of 50% of Cenvat credit availed on capital goods, the credit of Rs. 11,42,421/- and Rs. 5,62,089/- availed by them in the subsequent financial years was incorrect and liable to be reversed in terms of Rule 4(4) of Cenvat Credit Rules, 2001/2002. 2.1 On being pointed out by the departmental officers, the appellant-assessee realized the mista....

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....rovisions of law they have claimed depreciation under the Income Tax Act on the full amount of the capital goods instead of proportionate amount pursuant 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, da....

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....part of the assessee is established and accordingly imposed equal amount of penalty under Section 11AC read with Rule 14 of the Cenvat Credit Rules and also held will be liable to interest. 2.3 The appellant-assessee had moved before the Commissioner (Appeals) who vide the impugned order was pleased to reduce the penalty and sustaining an amount of Rs. 2.75 lakhs. The appellant is in appeal ....