TaxTMI 
TaxTMI 
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 he shall excercise such option for all .............................,and such option shall not be withdrawn during the remaining part of the financial year.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?
Rule 6 of CCR, 2004 - procedure to be followed for availing procedure prescribed under rule 6(3A)
24 Apr 2010 
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Intimation requirement for electing input credit option may trigger reversal of CENVAT credit or penalties if omitted.
Rule 6 requires that when a taxpayer elects an option relating to exempted goods or services the choice must be applied for the whole financial year and, for certain options, written intimation to the Superintendent under Rule 6(3A)(a) is required. Omission to intimate may be remedied by belated submission with condonation and ST 3 disclosure, but can lead to proportionate reversal of CENVAT credit under Rule 6(3)(ii) and potential penalties or demands depending on adjudication and any assessed revenue loss. (AI Summary)
Rule 6 requires that when a taxpayer elects an option relating to exempted goods or services the choice must be applied for the whole financial year and, for certain options, written intimation to the Superintendent under Rule 6(3A)(a) is required. Omission to intimate may be remedied by belated submission with condonation and ST 3 disclosure, but can lead to proportionate reversal of CENVAT credit under Rule 6(3)(ii) and potential penalties or demands depending on adjudication and any assessed revenue loss. (AI Summary)