Rule 6 of CCR, 2004 - procedure to be followed for availing procedure prescribed under rule 6(3A)

[sunil mehta]

Explanation I to Rule 6(3)(ii) OF CCR, 2004, says that '......If the mfg of goodsd or the provider of output service, avails any of the option under this rule ,. he shall excercise such option for all .............................,and such option shall not be withdrawn during the remaining part of the financial year. ' Rule 6(3A) (a) mentions about giving 'intimation ' in writing to the Suptd. of C.Excise. Query:-1)Whether service provider availng option under Rule 6(3A)(a) of CCR, 2004, has to mandatorily give intimation every year to suptd.? 2)What happens if he has given in 1st. year but forgot to give intimation in 2nd. year?

[Guest]

Pay 10% of the value of the exempted goods or 8% of the value of the exempted services in terms of rule 6(3)(i). That's the thumb rule. A liberal view is that if it is considered as a technical flaw without causing any loss to the revenue, then pay penalty in case the adjudicating officer decides so, of course with the usual reversals as per rule 6(3A).

[sunil mehta]

In my query i had mentioned about rule 6(3)(ii_ and not rule 6(3)(i).Rule 6(3)(ii) speaks of reversal of proportionate cenvat credit and not paying 6% of exempted services. Expln.I gives direction to intimate stax dept. if any of the two options are opted by service provider. Whether by not intimating suptd. of stax about options under rule 6(3)(ii) attracts any penalty ? or whether suptd. may deny cenvat credit on the grounds that no intimation was given ? Pl. clarify

[ranganath shenoy]

pls submit it now ,with arequest for condonation of delay.Mention the fact in the ST-3 RETURN

AI Summary

Rule 6(3A) CCR, 2004: Annual Intimation Crucial for Service Providers; Delays May Impact Cenvat Credit Eligibility A discussion on Rule 6 of the Cenvat Credit Rules (CCR), 2004, focuses on procedural requirements under Rule 6(3A) for service providers. The initial query asks whether annual intimation to the Superintendent of Central Excise is mandatory and the consequences of missing it in subsequent years. Responses suggest paying a percentage of the value of exempted goods or services as a rule, with potential penalties for technical flaws. Clarification is sought on whether failing to notify affects cenvat credit eligibility. A suggestion is made to submit a delayed intimation with a request for condonation, noting it in the ST-3 return.