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TMI Blog2024 (7) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... sary particulars. The allegation in the Show Cause Notice is that the appellant has not complied with this requirement of intimating the Department. The Tribunal in the case of Mercedes Benz India Pvt. Ltd. [ 2015 (8) TMI 24 - CESTAT MUMBAI] had occasion to consider the very same issue and held that the requirement to inform the Department with regard to the option exercised is only procedural in nature - In the present case, it is not disputed that on being pointed out, the appellant has reversed the proportionate credit along with interest. The requirement under Rule 6(3)(ii) stands satisfied. In such circumstances, the Department ought not to have raised the Show Cause Notice demanding 5%/6% of the value of exempted goods. The demand can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) upheld the same. Hence this appeal. 2. The Ld. Counsel Shri N. Viswanathan appeared and argued for the appellant. It is submitted that the appellant though had availed common credit on input services for the disputed period had reversed the proportionate credit availed in respect of exempted goods along with interest on being pointed by the officers of the Department. However, the Show Cause Notice has been issued alleging that the appellant has not intimated the Department about availing the option of reversing the proportionate credit. The said requirement of intimating the Department regarding the option is only a procedural lapse. It is submitted that in the case Mercedes Benz India Pvt. Ltd. Vs. Commissioner [2015-TIOL-1550- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e services. Sub-rule (3) of Rule 6 speaks about the situation when such manufacturer or service provider does not maintain separate accounts. The said rule provides for two options. (a) a manufacturer shall pay 5%/6% of the value of the exempted goods OR (b) reverse the credit on inputs and input services pertaining to exempted goods and exempted services as per the procedure and conditions prescribed in Rule 6(3A). 7. Rule 6(3A) provides that the manufacturer / provider of output service has to exercise the option by intimating in writing to the Superintendent of Central Excise giving necessary particulars. The allegation in the Show Cause Notice is that the appellant has not complied with this requirement of intimating the Department. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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