TaxTMI 
TaxTMI 
2018 (3) TMI 273
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.... to the interest on overdraft facility, interest on cash credit facility and discount on discounting of bills, bills of exchange or cheques and that on the cash credit facility provided to the customer, the interest portion earned is not subject to service tax. They have availed cenvat credit in respect of common services used for taxable as well as exempted service. Show cause notice was issued wherein demand of 8%/6% on the value of exempted service was raised in terms of Rule 6 (3) (i) of Cenvat Credit Rules 2004 for the period April 2008 to March 2011. The adjudicating authority has confirmed the said demand and imposed the penalty and also demanded the interest. Being aggrieved by the order-in-original the appellant filed the present a....
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....) Commissioner of Central Excise Vs. Nicholas Piramal Ltd. 2017 (349) ELT 33 (Bom.) (iii) Sahyadri Strach & Industrial Pvt. Ltd. Vs. Commissioner of Central Excise, Kolhapur 2016-TIOL-615-CESTAT-MUM (iv) Mercedes Benz India (P) Ltd. Vs. Commissioner of C. Ex., Pune-I 2015 (40) STR 381 (Tri.-Mumbai) (v) Bhingar Urban Co.op. Bank Ltd. Vs. C.C.E. Cus. & S.T., Aurangabad 2016 (41) STR 673 (Tri.-Mumbai) (vi) M/s. Dwarkadas Mantri Nagar Sahakari Bank Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad. 2016-TIOL-702-CESTAT-MUM (vii) Jost s Engineering Co. Ltd./Jaiprakash Chaurasia Vs. Commissioner of Central Excise, Mumbai-III 2013-TIOL-CESTAT-MUM (viii) Commissioner of C.Ex., Goa Vs....
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.... Mercedece Benz India Pvt. Ltd. Vs. CCE, Pune 2015 (40) STR 381 (Tri.-Mumbai ) wherein the following observations were made. "5.1 We have observed that in Rule 6(3) prevalent at the relevant time, two options have been provided:- (i) Payment of 5% on value of exempted services. (ii) Payment of an amount equal to the Cenvat Credit amount attributed to input services used in or in relation to manufacture of exempted goods or provision of exempted services as provided under sub rule (3A) (b). It is observed that the appellant has availed the option provided under sub rule (3)(ii) of Rule 6 and paid an amount as per sub rule (3A) alongwith interest and intimated the same to the jurisdictional superintendent i....
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....s required to pay an amount as per the formula provided under sub rule (3A) on monthly basis. However, we find that as per the provision, payment on monthly basis is provisional basis, therefore it is not mandatory that whole amount or part of the amount was required to be paid on every month. The appellant though belatedly calculated the amount required to be paid in terms provided under Rule (3A) of Rule 6, therefore to fulfill the condition, assessee should pay the said amount, which has been complied by the appellant. 5.2 As regard the delay in payment, if any, the appellant have discharged the interest liability on such delay. Regarding the compliance as provided under Clause (a) of sub Rule (3A) of Rule 6 the appellant while ....
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....tted, we are of the view, as regard this compliance of Rule 6 (3A), it stood made. 5.3 As regard the contention of the adjudicating authority that this option should be given in beginning and before exercising such option, we are of the view that though there is no such time limit provided for exercising such option in the rules but it is a common sense that intention of any option should expressed before exercising the option, however the delay can be taken as procedural lapse. We also note that trading of goods was considered as exempted service from 2011only, thus it was initial period. We are also of the view that there is no condition provided in the rule that if a particular option, out of three options are not opted, then on....
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....mount which is to be recovered shall not be in any case more than Cenvat Credit attributed to the input or input services used in the exempted goods. It is also observed that in either of the three options given in sub rule (3) of Rule 6, there is no provisions that if the assessee does not opt any of the option at a particular time, then option of payment of 5% will automatically be applied. Therefore we do not understand that when the appellant have categorically by way of their intimation opted for option provided under sub-rule (3)(ii), how Revenue can insist that option (3)(i) under Rule 6 should be followed by the assessee. 5.5 As discussed above and in the facts of the case that actual Cenvat credit attributed to the exempte....