TaxTMI 
TaxTMI 
2018 (1) TMI 481
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....have availed the benefit of cenvat credit in respect of the inputs and input services. The inputs and input services are common for both manufacturing as well as trading activity. The appellant herein had filed an intimation regarding exercising option under Rule 6(3A) of the Cenvat Credit Rules, 2004 (hereinafter referred to as the Rules) on 7th October 2013 informing the Superintendent of Central Excise in charge of the Range as to their intention of reversing the cenvat credit proportionately attributable to the trading activity undertaken by them. In pursuance of such intimation, the appellant herein had in the monthly returns specifically indicated the credit utilized for payment of amount in terms of Rule 6 of the Rules. During the co....
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.... they have reversed the amount as provided under the provisions of Rule 6(3A) of the said Rules. He would draw my attention to the provisions of Rule ^93) and 6(3A) and submits that they have followed the procedure in toto. 3.1 It is his further submission that having followed the procedure, there is no question of demanding an amount equivalent to 6% of the value of the trading activity undertaken by them. He would rely upon the decision of the Tribunal in the case of Mercedes Benz India (P) Ltd. Vs. CCE, Pune-I - 2015 (40) STR 381, para 5.4 and 5.4. 4. Learned departmental representative, on the other hand, draws my attention to the findings recorded by the adjudicating authority in para 11 and submits that the appellant has not kep....
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....nt. of value of the exempted goods and the provider of output service shall pay an amount equal to six percent of value of the exempted services; or (ii) the manufacturer of goods or the provider of output service shall pay an amount equivalent to the CENVAT credit attributable to inputs and input services used in, or in relation to, the manufacture of exempted goods or for provision of exempted services subject to the conditions and procedure specified in sub-rule (3A). Explanation I. - If the manufacturer of goods or the provider of output service, avails any of the option under this sub-rule, he shall exercise such option for all exempted goods manufactured by him or, as the case may be, all exempted services provided b....
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....ase in hand, it is noticed that the provisions of Rule 6(3) specifically indicate that an assessee if he is opting not to maintain separate account shall follow the options given under the said sub-rule. In the case in hand, the appellant herein had exercised their option of not maintaining separate account and following the option of payment of an amount as determined under sub-rule (3A). The said sub-rule (3A) specifically lays down the procedure that needs to be followed by the assessee and the one of the main procedures is in clause (a) wherein an option needs to be exercised by the manufacturer/assessee. In the case in hand, the appellant herein had exercised this option on 7th October 2013 itself. It is the case of the Revenue that th....