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TMI Blog2021 (11) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided that entire credit in respect of receipt and use of inputs/input service is allowed when such input and input service is used in dutiable final products and taxable service. However, nowhere in Rule 6 it is provided that the input or input service used in dutiable goods shall not be allowed. Further it is observed that the adjudicating authority has raised the demand of ₹ 5,94,034/- inter alia alleging that there was a delay in exercising option, which is only as per the directions of this Bench in the first round, which should have been given by the adjudicating authority himself. Moreover, the demand raised for a mere delay in exercising the option is highly disproportionate since the delay, if at all, is a mere irregular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the formula prescribed under Rule 6(3A) of the CCR 2004, etc. 2. SCN was issued based on the audit note, without further investigation, wherein a demand was proposed under Rule 6(3) at the rate of 5% on the difference value of sale amounting to ₹ 54,71,066/- for the period July 2010 to March 2015 along with interest and penalty and it was further proposed that the credit reversed by the appellant should be appropriated against the demand raised in the SCN. The adjudicating authority dropped the demand of ₹ 7,29,273/- for the period of July 2010 to March 2011 and confirmed the demand of ₹ 47,41,793/- being the amount payable in terms of Rule 6(3)(i) of CCR, 2004 for the period July 2010 to March 2015 and also appropri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: 8 . From the reading of Rule 6(1), it is clear that only in respect of input or input service used in exempted goods are not allowed. That means input or input service used in taxable service/dutiable goods, Cenvat credit is allowed. Sub-rule (2) of Rule 6 is only as an option that if any input or input services used in exempted goods, credit should not be allowed and only with this intention some mechanisms for expunging Cenvat credit attributed only to the exempted goods are provided. As per clause (b)(ii) (iv), it is clearly provided that entire credit in respect of receipt and use of inputs/input service is allowed when such input and input service is used in dutiable final products and taxable service. However, nowhere i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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