2018 (3) TMI 506

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....nductor devices. They were availing Cenvat credit on inputs and input services in terms of Cenvat Credit Rules, 2004. Some of the finished goods were also cleared availing exemption under Notification 64/95-CE (post 2011) dated 16/03/1995. The dispute in the present case relates to applicability of Rule 6 (3) (i) of Cenvat Credit Rules, 2004 for the period 2009-2010 to 2013- 2014. The Revenue contended that the appellant have to discharge 5%/6% of value of exempted services as they have not maintained separate accounts and also availed credit on various common input services. On this basis, proceedings initiated against the appellant concluded by the impugned order. The Original Authority held that an amount of Rs. 1,17,57,573/- should be p....

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.... the Revenue. On this basis, since the appellant did not take suo-moto action to follow the legal provision, the Original Authority held that they are bound by the provisions under Rule 6 (3) (i) and cannot choose the other method fulfilling the obligation of Cenvat Credit Rules. The learned Counsel contested such finding on the ground that they have fully complied with the provision of Rule 6 in all aspects for the period pre as well as post 01/04/2011 and this fact cannot be disputed. The delay in complying the provisions did not result any loss to the Government as wherever reversal of credit or payment of differential duty post 2011 was involved, the same was discharged with applicable rate of interest for such delay. As such, it is pra....

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....hich satisfies the condition for one of the options under Rule 6. The objection of the revenue is that the appellant having proceeded with one option cannot switch over to another option. We find that there is no substantial variation in following the provision of Rule 6. Admittedly, reversal of credit of proportionate amount prior to 01/04/2011 on common input services and fully post 01/04/2011 and payment of full duty liability on goods otherwise eligible for Notification 64/95-CE (post 2011) substantially satisfies the condition to be followed by an assessee in case of availing credit on common input services. We note that subsequent reversal with applicable interest will also satisfy the provision of Rule 6. We note that in M/s Beekay E....