5% Payment Option Not Automatic for Credit Reversal under Rule 6 of Cenvat Credit Rules

Siddheshwar SSK Ltd Vs Commissioner of Central Excise (CESTAT Mumbai) CESTAT Mumbai held 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 at a particular time, then option of payment of 5% will automatically be applied. Accordingly, demand unsustainable. Facts- The appellant has preferred the present appeal against order of Commissioner of Central Excise for recovery of ₹ 57,50,058 u/s. 11A of Central Excise Act, 1944, along with applicable interest u/s. 11AB of Central Excise Act, 1944 while impos...