freezing of cenvat facility

[MEHUL ASHAR]

Respected Sir,

                        Is there any rule in existance that if an assessee fails to pay duty late(PLA)  for 3 times in a particular financial year his cenvat facility is withdrawn for couple of months.iF yes what is the procedure has to be made from the side of assessee.Please reply.

 

THANKING U.

[YAGAY andSUN]

Yes, ealier there was such procedure in the Central Excise Laws.  You would have to show bonafide in this regard and contact to commissioner of Central Excise Department.

[v n]

As per the existing provisions of Rule 8, No.  But this provision did exist earlier.  Now consignment wise PLA payment till duty plus interest is completely paid is the only provision.

AI Summary

Cenvat facility suspension no longer follows repeated PLA defaults; current regime requires consignment wise PLA till duty and interest cleared. Earlier, repeated failure to make PLA payments could result in temporary withdrawal of the cenvat facility subject to showing bonafide and representations to the commissioner. Presently, the specific withdrawal procedure for repeated PLA defaults has been removed; instead consignment-wise PLA payment governs clearance, requiring duty and accrued interest for each consignment to be fully paid to retain cenvat benefits.