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TMI Blog2022 (10) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities. Since trading activity is an 'exempted service' in terms of Rule 2 of the Cenvat Credit Rules 2004, the provisions of Rule 6 of the Cenvat Credit Rules, 2004 would be applicable in as much as the Appellant were engaged in providing both, taxable and well as exempted service. The Appellant had not maintained separate accounts for the receipts and use of input services for provisions of taxable and exempted output services and failed to intimate the Range Superintendent their option as required under Rule 6(3A) (a) of the Cenvat Credit Rules, 2004. Therefore, it appears that Appellant required to pay an amount equivalent to 5% of the value of exempted services for the year 2011-12 and 6% for 2012-13 and 2013-14. Accordingly, show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce on following Judgments:- * COMMISSIONER OF CENTRAL EXCISE VS. RELIANCE INDUSTRIES - 2019-TIOL-1593-CESTAT-AHM.) * DELL INTERNATIONAL SERVICES INDIA PVT. LTD. VS. CCE & S.T BANGALORE - FINAL ORDER NO. 20369/2020. * MOLEX INDIA PVT. LTD. VS. COMMISSIONER OF CENTRAL EXCISE, KARNATKA -2019-TIOL-3205-CESTAT-BANG) * DEEPAK FERTILSERS AND PETROCHEMICALS CORPORATION LTD. VS. COMMISSIONER OF CENTRAL AND SERVICE TAX, MAHARASHTRA (2020-TIOL-1310-CESTAT-MUM) * IBM INDIA PVT. LTD. VS. CCE, ST &CUS, BANGALORE (APPEAL NO. ST/20741/2014-DB) 2.1 He also submits that even for time being it is assumed that the Appellant would be required to reverse the credit at particular percentage under Rule 6(3)(i) of Cenvat Credit Rules 2004 then same canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of total sale value of the goods traded by them in terms of provisions of Rule 6(3) when the appellant agree for reversal of actual credit attributed to the quantum of trading sale (trading activity) in terms of Rule 6(3A) following the option available under Rule6(3). Provisions for payment of 5% or 6% of the sale value of exempted goods / exempted services is provided as one of the option given in Rule6(3) of Cenvat credit Rules which is reproduced below :- RULE 6. Obligation of a manufacturer or producer of final products and a [provider of output service. - (1) The CENVAT credit shall not be allowed on such quantity of [input used in or in relation to the manufacture of exempted goods or for provision of exempted services, or input s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or in relation to the manufacture of dutiable final products excluding exempted goods; (iii) for the provision of exempted services; (iv) for the provision of output services excluding exempted services; and (b) the receipt and use of input services - (i) in or in relation to the manufacture of exempted goods and their clearance upto the place of removal; (ii) in or in relation to the manufacture of dutiable final products, excluding exempted goods, and their clearance upto the place of removal; (iii) for the provision of exempted services; and (iv) for the provision of output services excluding exempted services, and shall take CENVAT credit only on inputs under sub-clauses (ii) and (iv) of clause (a) and input services und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 2 per cent. of value of the exempted services. Explanation I. - If the manufacturer of goods or the provider of output service, avails any of the option under this sub-rule, he shall exercise such option for all exempted goods manufactured by him or, as the case may be, all exempted services provided by him, and such option shall not be withdrawn during the remaining part of the financial year. 4.1 Learned Adjudicating Authority demanded 5% /6% of the total sale of the trading turnover of goods on the ground that option provided under Rule 6(3)(i) is applicable on the ground that claim of the appellant on the option provided under Rule 6(3)(ii) is not available for the reason that appellant have not complied with condition provided un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral lapse. We also note that trading of goods was considered as exempted service from 2011 only, thus it was initial period. We are also of the view that there is no condition provided in the rule that if a particular option, out of three options are not opted, then only option of payment of 5% or 6% provided under Rule 6(3)(i) shall be compulsorily made applicable, therefore we are of the view that Revenue could not insist the appellant to avail a particular option. In the present case admittedly it is appellant who have on their own opted for option provided under Rule 6(3)(ii). It is the appellant who have liberty to decide which option to be exercised and not the Revenue to decide the same. 4.3 We find that the appellant in the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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