2009 (4) TMI 579 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, Ahmedabad, in the 2009 (4) TMI 579 case, was presided over by Shri B.S.V. Murthy, J. The appellant appellants had claimed depreciation on capital goods and simultaneously availed Cenvat credit, which was identified by the department. Upon notification of the error, the appellants promptly reversed the credit. Subsequently, they filed a revised Income-tax return, which was accepted by the Income Tax Officer. The appellants' representative, Shri P.M. Dave, argued that the Cenvat credit was mistakenly taken after claiming depreciation, and that the penalty imposed under Section 11AC, equal to the Cenvat credit amount, was unwarranted. He referenced several decisions to support his argument that penalty need not be imposed once a revised return is filed. The Tribunal considered the submissions and acknowledged that the mistake was identified by the department, preventing the possibility of availing both depreciation and Cenvat credit. Consequently, a penalty was deemed necessary under Rule 27 of the Central Excise Rules, 2002. As the appellants did not contest the penalty under Rule 27, it was reduced to Rs. 5,000. The judgement was pronounced in court accordingly.