credit of AED_TTA for Payment of BED

[Himanshu Gupta]

My client is using his AED_TTA cenvat credit for payment of BED. I have gone through much information but could not get the clear ans. As per my understanding it is not allowed. so please tell me whether there is any condition under which such CC can be used in above mentioned manner.

[CSSANJAY MALHOTRA]

CENVAT of AED (TTA) can't be used for payment of BED as per the restrictive clause provided in Rule 3(7)(b) of CCR 2004. CENVAT of AED(TTA) is to be used against the payment of AED(TTA) only.

[Ganeshan Kalyani]

I agree with the views submitted by Sri Sanjay Sir. Thanks.

AI Summary

Cenvat credit of AED(TTA) cannot be applied to basic excise duty; it must fund only AED(TTA) liability. Cenvat credit of AED(TTA) cannot be used to discharge basic excise duty; the credit is restricted to and must be applied only against AED(TTA) liabilities.