Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 764 - AT - Central ExciseCENVAT credit - whether the appellant after discharging 10% of the value of the exempted products for the quarter 01.04.2008 to 30.6.2008 can choose/opt to follow the alternate option of reversal of Cenvat Credit availed on inputs attributable to exempted products for the remaining period of nine months ie., from 01.07.2008 to 31.03.2009? Held that: - Sub Rule (3)of Rule 6 of CCR, 2004 reveals that an assessee shall follow either of the options as applicable to him prescribed under Clause (i) or clause (ii) of Sub Rule (3) of the said Rule(s) of Cenvat Credit Rules 2004. The explanation-I appended to the said Sub Rule makes it clear that once the assessee avails any of the options ie., to pay 10% of the value of the exempted goods or reversal of proportionate Cenvat Credit availed on inputs attributable to manufacture of exempted goods, subject to the conditions and procedures laid down under Sub Rule (3A), the same cannot be altered in a given financial year - In the present case, the appellant availed the option by discharging 10% of the value of the exempted products for the initial quarter ie., from 01.04.2008 to 30.6.2008 for which no procedure has been prescribed for exercising such option, whereas to follow reversal of proportionate Cenvat Credit on inputs availed and attributable to exempted products, the detailed procedure is prescribed under Sub Rule 3A of CCR, 2004. Therefore, the appellant once exercised its option for the first quarter by discharging 10% of the value of the exempted products, they cannot switch over to the second route/option of reversal of proportionate credit availed on inputs attributable to exempted products, during the same financial year. Penalty - Held that: - the demand has been issued for the normal period of limitation and the amended Rule was inserted with effect from 01.04.2008, therefore, initial non-compliance should be viewed leniently - imposition of plenty ₹ 3,00,000/- appears to be too harsh - penalty reduced to ₹ 10,000/-. Appeal allowed in part.
|