Clearance of material against Cenvat credit.

[GOUTAM GHOSH]

1) In a situation like:-

On 01.05.2011- there was no Cenvat Credit available or P.L.A. Balance. Materials had to clear involving Excise Duty 25000.

On 02.05.2011- Some credits were availed from purchase of inputs amounting to Rs. 30000.

Now question is- how duties on 01.05.2011's despatch will be adjusted? Can this duty be adjusted against Cenvat credit?

2) There is a balance of Rs. 25000 in PLA and RS. 30000 in CENVAT Credit.

A despatch is made involving duty Rs 45000.

Now the question is- whether a single despatch (invoice) can simultaneously be adjusted for Rs. 25000 in CENVAT and Rs 20000 in PLA?

Please advise.

AI Summary

Clarifying Cenvat Credit Use for Excise Duty Adjustments: Simultaneous Cenvat and PLA Adjustments Explained A discussion on the clearance of materials against Cenvat credit raised questions about adjusting excise duties. One scenario involved no available Cenvat credit or PLA balance on 01.05.2011, with credits availed on 02.05.2011, questioning if duties could be adjusted against new credits. Another scenario involved a dispatch requiring Rs. 45000 in duty, with Rs. 25000 in PLA and Rs. 30000 in Cenvat credit, questioning if adjustments could be made simultaneously. Responses clarified that excise duty is generally payable the following month, allowing for simultaneous adjustments of Cenvat and PLA for single or multiple dispatches, subject to exceptions.