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

AED_TTA CENVAT Credit Cannot Be Used for Basic Excise Duty Payments Under Rule 3(7)(b) of 2004 Rules. A client inquired about using AED_TTA CENVAT credit for the payment of Basic Excise Duty (BED). The initial understanding was that such use is not permitted. A response clarified that under Rule 3(7)(b) of the CENVAT Credit Rules 2004, AED_TTA credit cannot be used for BED payments and must be used solely for AED_TTA liabilities. Another participant concurred with this interpretation, confirming the restriction.