TaxTMI 
TaxTMI 
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.
Payment of amount under rule 6(3) after utilising cenvat
30 Jul 2009 
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Cenvat reversal payment: rule 6(3) may be discharged by debiting CENVAT credit or by cash as prescribed.
The amount payable under rule 6(3) is a reversal of CENVAT credit and may be paid either by debiting CENVAT credit or by cash under Explanation II to rule 6(3A); rule 6(3A) provides the method to quantify the reversal while rule 6(3) (notwithstanding rules 6(1) and 6(2)) prescribes the reversal obligation. Form ER 1 requires disclosure of such utilisation, and where only the taxable attributable portion is used, rule 6(2) should be applied. (AI Summary)
The amount payable under rule 6(3) is a reversal of CENVAT credit and may be paid either by debiting CENVAT credit or by cash under Explanation II to rule 6(3A); rule 6(3A) provides the method to quantify the reversal while rule 6(3) (notwithstanding rules 6(1) and 6(2)) prescribes the reversal obligation. Form ER 1 requires disclosure of such utilisation, and where only the taxable attributable portion is used, rule 6(2) should be applied. (AI Summary)