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TMI Blog2011 (1) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act and have therefore paid less amount of duty than they would have paid. - as per the department the depreciated value of the goods were required to be done in accordance with Board s Circular No. 643/34/2002-CX dated 1.7.2002 - Held that: - depreciation for customs and excise purposes has to be calculated as per straight line method applying a lower prescribed percentage fixed for subsequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Act and have therefore paid less amount of duty than they would have paid. She states that the depreciated value of the goods were required to be done in accordance with Board s Circular No. 643/34/2002-CX dated 1.7.2002 (Sl. No. 14 to the Table annexed to the circular) read with Circular F. No. 495/ 16/93-Cus. VI dated 26.5.1993 referred to therein. She states that these circulars p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have availed off more credit the very next day. He also places reliance on the decision of the Hon ble Gujarat High Court in the case of CCE, Vadodara II Vs. Indeos ABS Limited 2010 (254) ELT 628 (Guj.) and CCE, jamshedpur Vs. Jamshedpur Beverages 2007 (214) ELT 321 (SC) for his argument on revenue neutrality. 4. I have considered the submissions from both sides. The cited decisions of the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erently. The lower appellate authority has clearly erred in allowing depreciation as admissible under the Income Tax law when a uniform and unambiguous procedure has been laid down by the Central Board of Excise and Customs to be followed by all assessees subject to excise law. Moreover, I find that the plea of revenue neutrality is not valid. Under the CENVAT Credit Rules, the sister concern was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Board. As such, while setting aside the impugned Order-in-Appeal, I allow the Departmental appeal by way of remand to the original authority for re-calculation of the differential duty amount applying a straight line depreciation method as prescribed in the Board s circulars cited above. The respondents shall be allowed an adequate opportunity of hearing before passing a fresh order. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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