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2023 (12) TMI 172 - AT - Central ExciseCENVAT Credit - intimation/declaration regarding exercise of option in terms of Rule 6(3A) of the said Rule was not given to the jurisdictional officer - HELD THAT:- Enough, while acknowledging separate location of both the premises and separate maintenance of account for both manufacturing and trading activities, the Commissioner has apparently reached at a finding that common input services were being used by the Appellant for both trading and manufacturing activities as Appellant had been maintaining common Balance Sheet for its manufacturing as well as trading activities, despite the fact that Balance Sheet of the Company records the financial transactions including Profit & Loss, Assets & Liability of the entire Company and it has got nothing to do with availment of services which are recorded in the accounting package, as such, separately. The issue is no more res integra in view of consistent decisions of this Tribunal that has attained finality with the approval of various Appellate Courts that Rule 6(3)(i) ibid cannot be made automatically applicable on failure to intimate in writing about options to be availed by the assessee but here the facts are completely different in the sense that Appellant disputed the demand saying that it had not availed any common input services for its trading activity, but accepted the observation of Audit without challenging the legality of the issue only to set the dispute at rest. Therefore, proportionate reversal, when made it in compliance to Audit report, is well within the knowledge of the Respondent- Department. Such a paper work in putting a written intimation would have added no additional advantages to the Appellant. In view of the settled principle of law that in the absence of such intimation in writing Rule 6(3)(i) cannot be applied to confirm the demand by taking 5%/6% of the entire credit amount. The order passed by the Commissioner of Central Excise, Pune-I is hereby set aside - Appeal allowed.
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