TaxTMI 
TaxTMI 
During audit by Service tax dept , the procedure lapse of non intimation to dept. has been detected. Whether proportionate cenvat can be allowed after reversal of cenvat on exempted services.Dept . insisting for full cenvat disallowance.
cenvat rule 6(3A) procedure lapse
05 Apr 2017 
14 Replies 
5066 Views Asked by
Procedure lapse under CENVAT rules: exercise statutory option, intimate belatedly, reverse proportionate credit and seek condonation.
Procedure lapse for failure to give notice under Rule 6(3) and intimation under Rule 6(3A) can be addressed by exercising the Rule 6(3) option, filing the Rule 6(3A) intimation with a request for condonation of delay, reversing CENVAT credit proportionately and paying interest, and then contesting for proportionate credit in departmental proceedings; the department may still issue show cause notices, propose penalties, or insist on full disallowance. (AI Summary)
Procedure lapse for failure to give notice under Rule 6(3) and intimation under Rule 6(3A) can be addressed by exercising the Rule 6(3) option, filing the Rule 6(3A) intimation with a request for condonation of delay, reversing CENVAT credit proportionately and paying interest, and then contesting for proportionate credit in departmental proceedings; the department may still issue show cause notices, propose penalties, or insist on full disallowance. (AI Summary)