2018 (7) TMI 87

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....facture of dutiable products (sugar and molasses) as well as exempted goods (extra neutral alcohol / rectified spirit). They were not maintaining separate accounts for the common inputs used, as required under Rule 6(2) of Cenvat Credit Rules, 2004. From the ER 1 return for the period April 2009 to July 2009, it was noticed that they had reversed the credit attributable in respect of common inputs and input services used for manufacture of exempted goods. However, the appellants had not filed the declaration mentioning their option, as required under Rule 6 (3A) of Cenvat Credit Rules, 2004. The department was of the view that having not filed the declaration by giving the option of reversing the credit attributable to manufacture of exempt....

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..... 6. The issue that arises for consideration is whether the assessee is liable to pay an amount equal to 10% or 5% of the value of excise clearance as applicable in terms of Rule 6(3)(i) of Cenvat Credit Rules, 2004 for not having filed declaration exercising option under Rule 6 (3A) ibid. The said issue has been considered by the Tribunal in the case of Cranes & Structural Engineers Vs Commr. Of C.Ex., Bangalore (supra), wherein the tribunal observed as under :- 4.1 On analysis of Rule 6(3A), I find that while exercising the option, the manufacturer of goods or the provider of output service shall intimate in writing to the Department regarding the option exercised. In the present case, admittedly there is no intimation given by the appe....