2018 (5) TMI 182 - AT - Central Excise

CENVAT credit - Depreciation was also claimed - It is the case of the appellant that they had filed revised returns with the Income tax authorities, after cancelling the entry for the amount of Central Excise duty involved in the capital goods - Held that - both the lower authorities have come to the conclusion that the appellant is not been able to justify that the revised income tax return so filed and that amount of Central Excise duty was deducted from the depreciation when the revised refund claim filed - the specific query was raised by the Bench as to whether CA certificate indicating that Central Excise duty has been reduced form the depreciation claim, it was not answered satisfactory. The entire matter needs reconsideration by the Adjudicating Authority - appeal allowed by way of remand.

Summary

Issues involved: Eligibility to avail cenvat credit of Central Excise duty paid on capital goods while claiming depreciation on excise duty before income tax authorities.

In this case, the Appellate Tribunal CESTAT AHMEDABAD heard an appeal against an order passed by the Commissioner of Central Excise-RAJKOT. The issue revolved around the eligibility to avail cenvat credit of Central Excise duty paid on capital goods while simultaneously claiming depreciation on excise duty before the income tax authorities. The appellant had filed revised returns with the income tax authorities, canceling the entry for the Central Excise duty involved in the capital goods. However, the Revenue contended that this action was not properly justified. Both lower authorities concluded that the appellant failed to justify that the revised income tax return was filed with the deduction of Central Excise duty from the depreciation claim. The Bench raised a specific query regarding a CA certificate indicating the reduction of Central Excise duty from the depreciation claim, which was not satisfactorily answered. The Tribunal found that the matter required reconsideration by the Adjudicating Authority and set aside the impugned order, directing the Adjudicating Authority to follow the principles of natural justice before reaching a conclusion. The appeal was disposed of by way of remand, without expressing any opinion on the facts of the case.