Per T.K. Jayaraman : These appeals have been filed against the Orders-in-Appeal No. 88 89/2005 dated 31.03.2005 passed by the Commissioner of Central Excise (Appeals), Bangalore.

2. The appellants purchased Capital Goods. They availed 50% of Cenvat Credit in the first year as per the Rule prevailing and also in respect of 50% of unavailed portion, they availed depreciation. At the end of the second year, they availed the balance 50% of the credit. Revenue proceeded against the appellants on the ground that they had contravened Rule 4 (4) of Cenvat Credit Rules, which states that the Cenvat credit of capital goods shall not be allowed in respect of that part of the value of capital goods which represents the amount of duty on such capital goods which the manufacturer claims as depreciation under Section 32 of the Income Tax Act, 1961. When the irregularity was pointed out, the appellants reversed the Cenvat Credit taken under protest. The original authority, in the Orders-in-Original, appropriated the Cenvat credit reversed and further demanded interest under Rule 12 of Cenvat Credit Rules read with Section 11AB of the Central Excise Act. Further, he imposed penalties under Ru