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TMI Blog2015 (11) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... se is that the appellant is Cooperative Bank and engaged in providing banking and financial services. The availed Cenvat credit in respect of common input services amounting to Rs. 3,585/- during the period April 2008 to March 2009. Show cause notice dated 13/6/2013 was issued to the appellant wherein it was alleged that the appellant is engaged in various banking and other financial services out of which certain services i.e. interest on cash credit and interest on term loans are exempted services therefore, the appellant has availed Cenvat credit on common input services it has been used in taxable services as well as aforesaid exempted services. In terms of Rule 6(3)(i) of Cenvat Credit Rules, 2004, the appellant is required to pay an am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the above notification and the clarification of the board, in the present case the rule 6(3) is not at all applicable as the period involved is April, 2008 to March, 2009, during which interest was not treated as exempted service. He further submits that as regard the allegation of the Revenue that appellant has not maintained separate account as required under rule 6, it is his submission that the requirement of maintenance of separate accounts for receipt, consumption and inventory of inputs used in exempted services as well as taxable service came into effect only by Notification No. 3/2011-CE (NT) dated 1/3/2011 and prior to that there was no requirement of maintenance of separate account. Therefore the condition made effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re service tax credit has been reversed alongwith interest. As regard procedure and condition specified in sub rules (3A),he submits that it is only mechanism for calculation and payment of the amount as specified under Rule 6 (3)(iii). When the appellant has paid entire service tax amount there is no question of going into calculation and procedure as prescribed under Rule (3A) of Rule 6 therefore substantial requirement of the provisions that assessee pay amount equal to the Cenvat attributable to the exempted service has been complied with. He further submits that the appellant as stated above, reversed the entire service tax credit alongwith interest, the case is covered by retrospective amendment made vide Section 73 of Finance Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s retrospective amendment for regularizing case of Rule 6 was available only on observance of certain procedure. According to the procedure prescribed, the appellant should have paid the amount of Cenvat credit attributable to the exempted service alongwith interest @ 24%. However the appellant have not complied with said procedure and did not file any application to the Commissioner for claim the amnesty scheme therefore at this stage the benefit of such scheme can not be extended to the appellant. He heavily placed reliance on the Honble Bombay High Court judgment in case of CCE, Pune Vs. Nicholas Piramal (India) [2009(244) ELT 321(Bom)]. He submits that in view of the above judgment assessee is required to follow the procedure as prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing proposed to change this formula to actual basis, the value of service being net interest earned less interest paid on deposits, subject to a minimum of 50% of interest paid on deposits. For the non-financial sector it is being proposed than they may reverse credits on gross interest basis." From the above clarification and I also read amendment notification No. 11/2012-ST dated 17/3/2012, interest, prior to 17/3/3012 was excluded from the taxable value and thereafter it was explicitly made exempted. Therefore the board has clarified that after 17/3/2012 the interest of bank loan become exempted and Rule 6(3) was applied. However the board has clarified that prior to 17/3/2012 the value of interest was not be relevant for the reversal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue and it was observed that as against Petty amount of Cenvat credit huge amount of lacs and crores were demanded from the assessee invoking provisions of Rule 6(3). After realizing serious anomaly in the provisions the government brought retrospective amendment in Rule 57 CC, Central Excise Rules, 1944 and Rule 6 of Cenvat Credit Rules, 2002/2004. According to said retrospective amendment in all such cases option was given to the assesee that if the asesssee opt for payment of an amount of Cenvat credit attributable to the exempted goods/services alongwith interest @ 24% all the proceedings shall stand concluded and no further demand shall be made. In the present case appellant not only paid the amount required under the retrospective am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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