TMI Blog2023 (5) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 M/S. MERCEDES BENZ INDIA (P) LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-I [ 2015 (8) TMI 24 - CESTAT MUMBAI] has held that the appellant have complied with the condition prescribed under Rule 6(3)(ii) read with sub-rule (3A) of Rule 6 of Cenvat Credit Rules, therefore demand of huge amount of Rs. 24,71,93,529/- of the total value of the vehicle amounting to. Rs. 494,38,70,577/- sold in the market cannot be demanded. We are also of the view that Rule 6 of the Cenvat Credit Rules is not enacted to extract illegal amount from the assessee. It is seen that ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 01.09.2012. 3. By alleging lat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 under Rule 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvat Credit. The very fact that the Rule 6 (3AA) has been brought into effect from 1/04/2016 wherein the Adjudicating Authority is empowered to allow the assesse to reverse the Cenvat on proportionate basis on being pointed out, shows the legislative intent to allow the assessee to pay proportionate Cenvat Credit as the first option. 11. Relying on the cited case law, I hold that the demand confirmed for Rs.2,52,853/- in terms of Rule 6(3)(i), i.e. on 5%/6% of value of exempted goods is not sustainable and the same is set aside. 12. The Appellant has correctly reversed Rs.14,847/- along with interest of Rs.1796/- on proportionate reversal basis, in terms of Rule 6(3A). The interest paid by them is not disputed by the Revenue. These tw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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