TMI Blog2018 (1) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... procedure that needs to be followed by the assessee and the one of the main procedures is in clause (a) wherein an option needs to be exercised by the manufacturer/assessee - In the case in hand, the appellant herein had exercised this option on 7th October 2013 itself - On careful perusal of the provisions of Rule 6(3A) of the said Rules, I do not find any requirement of filing of an intimation every year. Both the lower authorities have not disputed the calculation done by the appellant in the case in hand. Having not disputed the said calculation and there being no contest to such reversal undertaken by the appellant confirming the demand of an amount of equivalent to 6% of the value of the trading activity only on the ground that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d April 2000 to 15th January 2016, the audit team held a view that the appellant having not filed the intimation as required under Rule 6(3A) of the said Rules has contravened the provisions and hence having not maintained separate records, is required to reverse an amount equivalent to 6% of the value of the trading activity undertaken by them. The appellant contested the show cause notice on merits before the adjudicating authority. The adjudicating authority, after following due process of law, confirmed the demand raised along with interest and also imposed penalty. Aggrieved by such an order, an appeal was preferred before the first appellate authority. The first appellate authority also, after following due process of law, upheld the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot exercised the option to pay an amount equivalent to the cenvat credit attributable to common input services used in or in relation to the trading activity (exempted service); that the appellant has failed to exercise the option under Rule 6(3A) of the said Rules as per the format provided in clause (a) of sub-rule (3A) of Rule 6 of the said Rules and thereby contravening the provisions of Rule 6(3A). It is also his further submission that the appellant having not maintained separate account as provided under Rule 6(3) of the said Rules, the demand raised of an amount equivalent to 6% of the value of the trading activity is correct. He said nothing more needs to be added to the submissions made by him. 5. On careful consideration of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he financial year. Explanation II. - For removal of doubt, it is hereby clarified that the credit shall not be allowed on inputs and input services used exclusively for the manufacture of exempted goods or provision of exempted service. Explanation III. No CENVAT credit shall be taken on the duty or tax paid on any goods and services that are not inputs or input services. (3A) For determination and payment of amount payable under clause (ii) of sub-rule (3), the manufacturer of goods or the provider of output service shall follow the following procedure and conditions, namely:- (a) (a) while exercising this option, the manufacturer of goods or the provider of output service shall intimate in writing to the Supe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appellant having not filed this intimation every year, they are not eligible to reverse the amount proportionately attributable to the exempted service (trading activities in this case). On careful perusal of the provisions of Rule 6(3A) of the said Rules, I do not find any requirement of filing of an intimation every year. In my view, both the lower authorities have misdirected their findings stating that an assessee is required to file an intimation every year. On this ground, I find that further proceedings which has been confirmed against the appellant needs to be set aside. 6. Further, it is noticed that the appellant has in their own wisdom following the procedures laid down under Rule 6(3A) wherein there is a formula given, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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