TaxTMI 
TaxTMI 
2021 (7) TMI 811
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.... which are located at Patalganga in Maharathtra and Silvassa in Dadra & Nagar Haveli. The appellants are engaged in manufacture of lubricating oils which are used extensively by the automobile industry and the industrial grade lubricating oils manufactured are also used in captive power plants, sugar mills, cement factories and other heavy engineering industries. Apart from the manufacturing activity, the appellants also import some lubricating oils from other countries which are directly received at their selling depots at various locations. From there, the goods are sold by the appellant to their customers. Out of the total sales turnover of the company, the proportion of trading goods, sold is around 2% since past several years. The head....
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.... appellant. Show Cause Notice dated 07.05.2013 was issued to deny application of the formula under Rule 6(3A) to compute Cenvat credit reversal on the ground that the appellants have excluded services listed under Rule 6(5) prevailing during the period of dispute. After due process of law, the original authority confirmed the demand alongwith interest and imposed penalties. On appeal, the learned Commissioner(Appeals) passed the Order-in-Appeal dated 20.04.2018 rejecting the appeal and upholding the Order-in-Original. Hence the present appeal before the Tribunal. 2. Shri Sushanth Murthy, learned Advocate appearing on behalf of the appellant argued both on merits as well as on the ground of limitation. He filed a compilation showing list ....
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....he proportionate credit . To support his contention, he relied upon the decisions in the case of Mercedes Benz India Pvt Ltd vs Commissioner of Central Excise, Pune 2014 (36) S.T.R.704 (Tri. - Mumbai), Tidel Park Ltd. vs Commissioner of Service Tax, Chennai 2010 (2) TMI 202 - CESTAT, Chennai and Nagar Urban Co-op. Bank Ltd. vs Commissioner of Customs, Central Excise & Service Tax, Aurangabad 2018 (3) TMI 273 - CESTAT, Mumbai. The decision in the case of M/s.Continental Device India Pvt. Ltd. vs CCE and ST, New Delhi vide 4 F.O.No.50674/2018 dt.16/2/2018 as well as the decision in the case of CCE, New Delhi - II vs M/s.Indraprastha Gas Ltd. vide F.O.No.57931/2017 dt.14.11.2017 was also relied upon by the learned Counsel. 4. On the ground ....
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....is that the appellant had not maintained separate accounts under Rule 6(2) of Cenvat Credit Rules and had not exercised the option to reverse the credit as provided under Rule 6(3). It is observed that as provided in Rule 6 (3A), the appellant on being pointed out, has reversed the proportionate credit along with interest. In the SCN itself, it is noted that the appellant has reversed the credit in proportion to the credit availed in respect of trading activity / traded goods. The only reason for raising the demand to the extent of 10% / 8% / 6% of traded goods for the disputed period, is that the appellants have not filed declaration as contemplated in Rule 6 (3A). The said issue has been settled by the decisions relied upon by the learned....
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....on, out of three options are not opted, then only option of payment of 5% provided under Rule 6(3)(i) shall be compulsorily made applicable, therefore we are of the view that Revenue could not insist the appellant to avail a particular option. In the present case admittedly it is appellant who have on their own opted for option provided under Rule 6(3)(ii). The meaning of the option as argued by the Ld. Sr. Counsel is that "option of right of choosing, something that may be or is chosen, choice, the act of choosing". From the said meaning of the term 'option', it is clear that it is the appellant who have liberty to decide which option to be exercised and not the Revenue to decide the same." 9. In the light of the above dec....