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.

AI Summary

Clarification on Rule 11(2) of CENVAT Credit Rules: Remaining credit balance does not lapse; transitional provision not applicable. A user inquired about the interpretation of Rule 11(2) of the CENVAT Credit Rules, 2004, specifically questioning whether the remaining CENVAT credit balance would lapse or remain unutilized until a certain threshold is crossed. The user provided a scenario involving a balance of 2,00,000 after certain deductions. An expert responded, clarifying that Rule 11 is a transitional provision and does not apply to the user's current situation.