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TMI Blog2019 (2) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that:- Rule 6(3A) provides for intimating the Department by issuing a letter as to the exercise of option of reversal of proportionate Credit - Further, in this case, the appellants have in fact issued a letter dated 16.05.2013 to the jurisdictional Range Officer, explaining that they were availing only the proportionate Credit on the value of taxable services, which is also reflected in their balance sheet as well as their ST-3 returns. The Department ought to have taken note of the fact that the appellant has exercised the option. The Department cannot force the assessee to pay 5% or 6% of the value of exempted services when the assessee has exercised the option of reversing the proportionate Credit - demand set aside - appeal allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.07.2018, upheld the same. Hence, these appeals. 3.1 On behalf of the appellant, Ld. Consultant Shri. Abhinav Kalra submitted that the appellant has been using common input services as well as inputs for trading as well as for providing output services. They have been reversing the proportionate Credit as applicable under Rule 6(3)(ii) as provided under the CCR, 2004. Thus, the appellant has reversed the Credit amount of ₹ 19,879/- in Appeal No. ST/40366/2017, wherein the impugned Order has confirmed a demand of ₹ 31,600/- holding that the appellant is liable to pay an amount of 6% of the value of the exempted services. 3.2 He argued that though the appellant had been maintaining separate accounts, in order to absolve con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintained separate accounts for inputs used for providing taxable services as well as exempted services, they have not furnished any such materials or documents to prove their contention. Therefore, it is established that the appellants have not been maintaining separate accounts. 4.2 He further submitted that the appellants have not exercised any option provided under Rule 6(3A) wherein it is stated that the jurisdictional Officer has to be intimated about the exercise of the option to reverse proportionate Credit. Therefore, they are liable to pay 6% of the value of exempted goods. The confirmation of demand, interest and imposition of penalties are therefore legal and proper. 5. Heard both sides. 6. The issue that arises for c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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