ANAND PIPE INDUSTRIES Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE assessee has availed CENVAT credit on the capital goods. Simultaneously, the assessee has also claimed depreciation under Section 32 of the Income -tax Act, 1961 on the capital goods. Subsequently, the assessee rectified the mistake by filing revised Income -tax returns. This has also been confirmed by Income -tax Department. Thus, as it stands the assessee had availed CENVAT credit but not depreciation on the value of the capital goods.

(3.) THE Deputy Commissioner, Central Excise, Nashik who has adjudicated the show cause notice, dropped the demand but however, imposed penalty equivalent to CENVAT credit availed under Section 11AC of the Central Excise Act, 1944 read with Rule 13 of Central Excise Rules, 2002 and the interest under Section 11AB of the Central Excise Act, 1944.