2023 (5) TMI 596

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....ndertaken by them during the material time. Before budgetary changes in 2011, there was no specific provision about traded goods as traded goods were neither exempt goods nor exempt service. By budget-2011 changes made in Cenvat Credit rules, 2004. Trading had been cleared as 'exempted service' with effect from 01.04.2011 vide Notification No.3/2011-Central Excise (N.T.) dated 01.03.2011. 2. Consequent upon the above changes made in Cenvat Credit Rules, 2004, the Appellant exercised option with effect from 01.04.2011 for proportionate reversal of credit in respect of common input service in terms of Rule 6(3A)(a) of Cenvat Credit Rules, 2004 and duly filed with the jurisdictional Range Superintendent on 04.09.2012 vide letter dated 01.09.2....

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....pellant has filed the option letter belated by opting to reverse proportionate Cenvat on common inputs used. During the period under consideration, the Tribunals have been taking a liberal view that on account of the mistake of non-filing of the option letter which is only a procedural condition, the assessee should not be made to suffer by making huge payments in terms of 5%/6% of the value of the exempted services. In the case of Mercedes Benz India (P) Ltd. Vs. CCE-Pune, 2015 (40) STR 381 (Tri.-Mum.), Mumbai Tribunal has held as under:- 5.4 We find that the appellant admittedly paid an amount of Rs. 4,06,785/- plus interest, this is not under dispute. Therefore in our view, the appellant have complied with the condition prescribed unde....

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....t has no other option but to accept and comply Rule 6(3)(i) and make payment of 5%/10% of sale price of exempted goods/value of exempted services is not acceptable or convincing. The Rule does not lay down any such restriction. The procedure and conditions laid in Rule 6(3A) is intended to make Rule 6(3) workable and not to take away the option available to the assessee. In any case, at no stretch of imagination can it be said that on failure to intimate the department, Rule 6(3)(i) would automatically come into application. [emphasis supplied] 9. In the case of Cranes & Structural Engineers, V. CCE-Bangalore-I, 2017 (347) E. L. T. 112 (Tri.-Bang.), Bangalore Tribunal has held as under:- 4.1 On analysis of Rule 6(3A), I find that while ....