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TMI Blog2014 (7) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... s on 14.10.2011 - benefit of cenvat credit and the income tax benefit cannot be available simultaneously - Prima facie, it appears that the applicant is not eligible to avail credit where they have taken benefit of revenue expenditure under the Income Tax Act. In this context, demand of interest under Rule 14 of CCR is prima facie justified - stay granted partly. - E/40138/2014-SM - MISC ORDER No.40547/2014 - Dated:- 11-3-2014 - Radio Kumar Das, J. For the Appellant : Mr J Shank ar Raman, Adv. For the Respondent : Mr K P Mural, Superintendent (AR) PER : P K Das 1. The applicant filed this application for waiver of predeposit of interest of ₹ 8,24,890/- and a penalty of ₹ 1 lakh. 2. The relevant facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat sub rule (4) of Rule 4 of Cenvat Credit Rules, 2004 specifically provided for reversal of credit in respect of claim of depreciation on the capital goods under the Income Tax Act which is not applicable in the case of claim of revenue expenditure on inputs. He relied upon the decision of the Tribunal in the case of Bajaj Auto Ltd.Vs CCE Pune 2009 (247) ELT 749 (Tri.-Mumbai) . 4. The learned Authorized Representative on behalf of Revenue submits that the applicant availed income tax benefit in March 2011 for the Financial Year 2010-11. But they have reversed credit on 14.10.2011 (i.e. financial year 2011-12). Therefore, they are liable to pay interest. He submits that even though they have not utilized the credit, they are requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it to utilize the balance Cenvat credit and there is no one to one co-relation between the inputs and the finished products, such availment of double benefit may escape notice. 3. Accordingly, Board desires that field formations under your charge may be sensitized against the unintended dual benefit availed of by certain assessees on account of treatment of unutilized CENVAT credit balance at the year end. In case the CENVAT credit balance has been treated as expenditure in Profit and Loss account and has not been written off in Books of Accounts, the concerned Income Tax authorities should be suitably intimated. The audit parties should also keep this aspect in mind while conducting audit. 6. It appears that the benefit of cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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