2017 (11) TMI 764

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.... as exempted products. They have been discharging 10% of the value of the exempted products as per Rule 6(3) of the Cenvat Credit Rules 2004 and continued the same practice, for the period April 2008 to June 2008 i.e. after amendment to Rule 6(3) of Cenvat Credit Rules brought into effect from 01.4.2008 providing option to discharge 10% of the value of the exempted product or to reverse proportionate credit availed on the inputs attributable to the exempted products. Later on 01.07.2008 they addressed a letter to the Dept., exercising option, under Sub Rule (3A) of Rule 6 of the CCR, 2004 to reverse proportionate credit availed on inputs attributable to exempted products. Alleging that the appellant cannot change their option during the sam....

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....0% of the value of the exempted products or to reverse proportionate credit availed on the inputs attributable to exempted products. The appellant had availed the first option by discharging 10% value of the exempted products for the first quarter from April 2008 to June 2008, therefore, in view of the explanation to Clause (ii) of Sub Rule 3 of Rule 6 of CCR, 2004 the appellant is debarred from switching over to Sub Rule 3(A) of CCR, 2004, during the same financial year ie., 2008-09. In support, the Ld. AR referred to the judgment of this Tribunal in the case of M/s Jubilant Life Sciences Ltd Vs CCW, Pune - 2016.TIOL.2026.CESTAT.Mum. 5. Heard both sides and perused the records. 6. The short issue involved in the present case for dete....

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....ovided by him, and such option shall not be withdrawn during the remaining part of the financial year. Explanation II.- For removal of doubt, it is hereby clarified that the credit shall not be allowed on inputs and input services used exclusively for the manufacture of exempted goods or provision of exempted service. 9. A plain reading of the said provision reveals that an assessee shall follow either of the options as applicable to him prescribed under Clause (i) or clause (ii) of Sub Rule (3) of the said Rule(s) of Cenvat Credit Rules 2004. The explanation-I appended to the said Sub Rule makes it clear that once the assessee avails any of the options ie., to pay 10% of the value of the exempted goods or reversal of proportion....