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TMI Blog2022 (11) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... read with sub-rule (3A) of Rule 6 of Cenvat Credit Rules, 2004 therefore demand of huge amount on the total value of the trading activity @ 5% / 6%/ 7% cannot be demanded. Rule 6 of the Cenvat Credit Rules is not enacted to extract illegal amount from the assessee. The main objective of the Rule 6 is to ensure that the assessee should not avail the Cenvat Credit in respect of input or input services which are used in or in relation to the manufacture of the exempted goods or for exempted services - when the appellant have categorically agree for the reversal of Cenvat credit by way of opting for option provided under sub-rule (3)(ii), how Revenue can insist that option (3)(i) under Rule 6 should only be followed by the assessee. The dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,09,89,384/- E/11764/2019 VAD-EXCUS-001-COM-44-18-19 dtd. 30.03.2019 April 2016 to March 2017 3,73,06,244 2. Briefly stated the facts of the case are that appellant are engaged in manufacturing and trading activity. During the relevant period, they have availed Cenvat Credit on the Input and input services. Alleging that the appellant also engaged in the activity of trading of goods and common input services have been used in the manufacture of excisable goods as well as in the trading activity, show-cause notices were issued during the relevant period to the appellant for recovery of 5%/ 6%/ 7% of the value of exempted service i.e. traded g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing vs. Union of India -2019(10) TMI 27 (vii) Nava Bharat Ventures Ltd. vs. CCE Hyderabad 2021(11)TMI 426 (viii) Spraying Systems India Ltd. vs. CCE- 2022-TIOL-17 CESTAT- BANG. 4. He submits that as per the impugned orders, the Appellant cannot opt for reversal of proportionate Cenvat Credit availed on common input services in terms of Rule 6(3)(iii) of Cenvat Credit Rules 2004. However Rule 6 of Cenvat Credit Rules 2004 provides three options for reversal of Cenvat Credit taken on input services used for exempted goods and exempted service, when the law has provided the option to the assessee to reverse the credit under any of the option which is beneficial to them, then in such a case adjudicating authority wrongly denied the exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. The main objective of the Rule 6 is to ensure that the assessee should not avail the Cenvat Credit in respect of input or input services which are used in or in relation to the manufacture of the exempted goods or for exempted services. If this is the objective then at the most amount which is to be recovered shall not be in any case more than Cenvat Credit attributed to the input or input services used in the exempted goods or exempted services. It is also observed that in either of the three options given in sub-rule (3) of Rule 6, there is no provisions that if the assessee does not opt any of the option ..... X X X X Extracts X X X X X X X X Extracts X X X X
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