Payment of amount under rule 6(3) after utilising cenvat

[SRINIVAS PALAKODETI]

CAN THE AMOUNT TO BE PAID UNDER RULE 6(3) AND RULE 6(3A) OF  Cenvat Credit Rule, 2004 BE PAID AFTER UTILISING THE CENVAT CREDIT LYING IN BALANCE OR TO BE PAID IN CASH.

AI Summary

Clarification on Cenvat Credit Payments Under Rule 6(3) and 6(3A): Cash or Credit Options Explained A query was raised about whether payments under Rule 6(3) and Rule 6(3A) of the Cenvat Credit Rules, 2004, should be made using the Cenvat credit balance or in cash. One respondent clarified that payments can be made using either method, as per Explanation II of Rule 6(3A). Another respondent emphasized that payments are specified under Rule 6(3), not 6(3A), and explained the calculation process for determining the amount payable, which involves reversing Cenvat credit proportionate to exempted goods and services. The discussion highlighted the procedural aspects and conditions for utilizing Cenvat credit for such payments.