Payment of Pre Deposit

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Can Pre - deposit be paid by way of reversal of Cenvat Credit?

AI Summary

Pre-deposit payments in Central Excise cases should be made in cash, not CENVAT credit, per Section 35F rulings. A discussion on whether pre-deposit payments in Central Excise cases can be made using CENVAT credit, with multiple contributors providing insights. The consensus is that pre-deposits should be made in cash, as supported by various court rulings, including the Supreme Court, which did not accept a CESTAT circular allowing CENVAT credit for this purpose. The CENVAT Credit Rules do not explicitly permit using CENVAT credit for pre-deposits under Section 35F of the Central Excise Act. Despite some contradictory judgments, most legal opinions favor cash payments for pre-deposits.