RULE 11(2) OF CCR 2004.

[VINOD KUMAR]

GOOD MORNING DEAR EXPERTS. EXTRACTS from rule 11(2) of CCR 2004.' after deducting the said amount from the balance, if any, lying in his credit, the balance, if any, still remaining shall lapse and shall not be allowed to be utilized for payment of duty on any excisable goods, whether cleared for home consumption or for export.'Sir, what is meant by this portion (1) whether the balance cenvat will totally end or (2) it will lying unutilized and will be utilized only after crossing 1.5 crores. Please reply. Thanks and regards.

AI Summary

Rule 11(2) CCR 2004: Unutilized CENVAT Credit Lapses at 1.5 Crore Turnover, Input Credit Still Applicable A query was raised regarding Rule 11(2) of the CCR 2004, questioning whether the balance CENVAT credit would lapse entirely or remain unutilized until crossing a turnover of 1.5 crore. The response clarified that any remaining balance credit would lapse and cannot be used for duty payments upon reaching a 1.5 crore turnover. However, credit can be taken for input raw materials in stock, inputs in finished goods, or inputs in work-in-progress once the turnover threshold is crossed.