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. As per plain reading of rule, the balance Cenvat Credit should totally end. One of my assessee is having the balance of ₹ 4,00,000/- on 31-03-2014 and he has balance of Cenvat Credit of ₹ 2,00,000/- after reversing ₹ 2,00,000/- in terms of above Rules. Please advise whether this balance Cenvat Credit of ₹ 2,00,000/- can be utilized for payment of duty during October 2014 i.e after crossing ₹ 1.5 Crores. Please reply. Thanks and regards.

[DR.MARIAPPAN GOVINDARAJAN]

Rule 11 of CENVAT Credit Rules, 2004 is a transitional provision. It will not be applicable to your present case.

AI Summary

Transitional CENVAT credit lapse: Rule eleven's transitional scope means it does not apply to these facts. Query whether residual CENVAT credit remaining after reversals under rule 11(2) lapses or remains for later use; expert reply: rule 11 is a transitional provision and is not applicable to the present facts.