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TMI Blog2024 (6) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... e 6(3A)(a) of the CENVAT Credit Rules itself, inasmuch as, this provision specifically requires that while exercising the option to pay in terms of Rule 6(3)(ii) of the CENVAT Credit Rules a manufacturer has to provide/intimate in writing to the Range Superintendent the particulars as detailed in the said sub-clause (a) of Rule 6(3A). The particulars detailed in the said sub-clause (a) of Rule 6(3A) of the CENVAT Credit Rules includes intimation of the date from which the option is being exercised or is proposed to be exercised. As a matter of fact, the requirement under Rule 6(3A)(a)(ii) of the CENVAT Credit Rules in clear terms indicate that a manufacturer can opt for the option under Rule 6(3)(ii) of the CENVAT Credit Rules at any point of time during a financial year, upon intimation to the Range Superintendent. Once such option is exercised by a manufacturer, the restriction as provided in Explanation-I of Rule 6(3) would become applicable and the manufacturer cannot withdraw from such option during the remaining part of the financial year - The correspondence on record of the Assessee with Range Superintendent exchanged during the period May 2008 to June 2008, clearly establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Rule-6 by the said Notification, which was made effective on and from April 1, 2008. In terms of the amended provisions, a manufacturer of goods or provider of output services who did not maintain separate accounts as provided for under Rule 6(2) of the CENVAT Credit Rules was given two options. In terms of Rule 6(3)(i) the manufacturer could make payment of an amount equal to 10% of the value of the exempted goods. However, in terms of Rule 6(3)(ii) of the CENVAT Credit Rules the manufacturer of goods could opt for paying an amount equivalent to the CENVAT credit attributable to input and input services used in or in relation to the manufacture of the exempted goods subject to the conditions and procedure specified in Rule 6(3A) of the CENVAT Credit Rules. Explanation-I in the said substituted Rule 6(3) however made it clear that if a manufacturer of goods or provider of output services availed any option (i) or (ii) during a financial year, such option has to be exercised for all exempted goods manufactured by him and it cannot be withdrawn during the remaining part of the same financial year. 4. In view of the aforesaid amendment made in the CENVAT Credit Rules; by a letter da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f CENVAT Credit Rules, 2004 and the same shall not be withdrawn during the same financial year. However, the Respondent-assessee started self-assessment by way of filing their ER-1 Return from April, 2008 to August 2008 by complying with clause (i) of sub-rule 3 of Rule 6 of CCR, 2004 wherein 10% of the value of exempted goods i.e., Coal-Tar and CO gas was reversed. The Respondent-assessee adopted such payments up-to August 2008 which is evident from the ER-1 return submitted by them. Accordingly, in view of the restriction imposed by Explanation-I to sub rule (3) of rule 6 of CCR, it was implied that they had opted for reversal of 10% ad valorem of exempted goods Coal-Tar and CO gas as per clause (i) of Sub-Rule 3 of Rule 6 of CENVAT Credit Rules, 2004 therefore, they were required to pay amount @10% ad valorem on all clearances of Coal-Tar and CO gas during the rest part of financial year 2008-09. The explicit provision made in this regard, shall not be withdrawn during the remaining part of the financial year makes this fact amply clear. It is a settled provision that explanation is part and parcel of that rule and it cannot be ignored while availing the benefit of the rule to w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of the CENVAT Credit Rules, continued to make payment as before, which was 10% of the value of the exempted goods, Coal-Tar and CO gas (hereinafter referred to as the said goods ), as provided in the erstwhile Rule 6(3)(b) of the CENVAT Credit Rules for April 2008. Mr. Chakraborty further submits that there has been compliance by the Assessee with the requirement under Rule 6(3) of the CENVAT Credit Rules, in making reversals of CENVAT credit during the said period in terms of Rule 6(3)(ii) read with Rule 6(3A) of the CENVAT Credit Rules and the restriction provided under Explanation-I of not being able to withdraw the option during the remaining part of the financial year can arise only when a manufacturer has exercised such option with due intimation to the jurisdictional Central Exercise authority. Learned Sr. counsel further submits that the issue involved in the instant appeal has already been decided by the learned tribunal in the case of : (i) Mercedes Benz India (P) Ltd. Vs. Commissioner of C.Ex, 2015 (40) STR 381(T), (ii) Aster Pvt. Ltd. Vs. Commissioner of Customs C.Ex, 2016 (43) STR 411 (T) 7. This Court after hearing learned counsel for the rival parties a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and input services used exclusively for the manufacture of exempted goods or provision of exempted service. (3A) For determination and payment of amount payable under clause (ii) of sub-rule (3), the manufacturer of goods or the provider of output Service shall follow the following procedure and conditions, namely: - (a) while exercising this option, the manufacturer of goods or the provider of output service shall intimate in writing to the Superintendent of Central Excise giving the following particular namely:- (i) name, address and registration No. of the manufacturer of goods or provider of output service; (ii) date from which the option under this clause is exercised or proposed to be exercised; (iii) description of dutiable goods or taxable services; (iv) description of exempted goods or exempted services; (v) CENVAT credit of inputs and input services lying in balance as on the date of exercising the option under this condition. 9. Having heard learned counsel for the rival parties and after going through the grounds taken by the respective counsels and the amended provision of CENVAT Credit Rules, it appears that the restriction provided under Explanation-I of not being a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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