1. This appeal is directed against Order-in-Appeal No. AKP/187/ NSK/2011, dated 30-9-2011 in which Commissioner (Appeals) confirmed the demand of Rs. 26,487/- along with interest and penalty of Rs. 26,487/-under Rule 15(3) of the Cenvat Credit Rules. He reduced credit disallowed from Rs. 16,204/- to Rs. 13,187/-.

2. The appellant is a partnership firm of Chartered Accountant under the trade name of M/s. Rathi Daga. They provide services under the category of 'Practicing Chartered Accountant'. They rendered taxable as well as exempted services and utilised Cenvat credit on input services such as telephone services, insurance, repairs & maintenance of motor car etc. It was detected by Audit mat they did not maintain separate accounts for services used in providing taxable and exempted services as required under Rule 6(2) of the Cenvat Credit Rules. The appellant had two options under Rule 6(3) of the Cenvat Credit Rules either to pay an amount equal to 8% of the value of the exempted services or pay an amount equivalent to the Cenvat credit attributed to the input services used for providing the exempted services by following conditions and procedure of Rule 6(3A). As they did no