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2018 (3) TMI 506

to follow payment of 5% in terms of Rule 6 (3) (i) for exempted goods. However, when pointed out later, that the same will apply for exempted services also (trading) the appellant chose to come out the scheme and pay the full duty liability on the exempted goods post 2011 and also reverse full credit of common input services post 01/04/2011, proportionate Cenvat credit pre 01/04/2007. On these facts, we note that the appellant did proceed and follow the option of reversing the credit on proportionate basis or full credit on common input services which satisfies the condition for one of the options under Rule 6. - Admittedly, reversal of credit of proportionate amount prior to 01/04/2011 on common input services and fully post 01/04/201 .....

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under Notification 64/95-CE (post 2011) dated 16/03/1995. The dispute in the present case relates to applicability of Rule 6 (3) (i) of Cenvat Credit Rules, 2004 for the period 2009-2010 to 2013- 2014. The Revenue contended that the appellant have to discharge 5%/6% of value of exempted services as they have not maintained separate accounts and also availed credit on various common input services. On this basis, proceedings initiated against the appellant concluded by the impugned order. The Original Authority held that an amount of ₹ 1,17,57,573/- should be paid by the appellant in terms of Rule 6 (3) (i) and also imposed a penalty of equivalent amount under Rule 15 (2) readwith Section 11AC of the Central Excise Act, 1944. 2. The le .....

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Rule 6 (3) (i) and cannot choose the other method fulfilling the obligation of Cenvat Credit Rules. The learned Counsel contested such finding on the ground that they have fully complied with the provision of Rule 6 in all aspects for the period pre as well as post 01/04/2011 and this fact cannot be disputed. The delay in complying the provisions did not result any loss to the Government as wherever reversal of credit or payment of differential duty post 2011 was involved, the same was discharged with applicable rate of interest for such delay. As such, it is prayed that the impugned order may be set aside. 5. The learned AR submitted that the appellant did not follow the provision of Rule 6 (3) (i). Admittedly, they had exempted services a .....

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ion. We find that there is no substantial variation in following the provision of Rule 6. Admittedly, reversal of credit of proportionate amount prior to 01/04/2011 on common input services and fully post 01/04/2011 and payment of full duty liability on goods otherwise eligible for Notification 64/95-CE (post 2011) substantially satisfies the condition to be followed by an assessee in case of availing credit on common input services. We note that subsequent reversal with applicable interest will also satisfy the provision of Rule 6. We note that in M/s Beekay Engineering Corporation vs. CCE, Raipur - 2017 (11) TMI 1468 - CESTAT NEW DELHI, the Tribunal observed as follow :- 10. Learned Counsel for the appellant relied on various decisions to .....

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