AMOUNT DEPOSIT IN PLA

[SNEHAL SHAH]

Sir,

We are Chemical mfg & Last 6 Months due to recession sales is slow down & due to another material production we are purchsing Raw material , so CENVAT accumulated .

Due to above reason we are debit Cenvat through A P II , CPII & Balance Service tax but not in PLA .

Range suptd. pressurising that u can paid duty through PLA otherewise u can face lots of problem .

Now my confusion is that , is it mandatory to debit duty PLA ? if we can not pay through PLA is it any Excise litigation face our unit.

Please guide & revert your valuable reply .

SACHIN

AI Summary

Payment of excise duty: duty may be discharged from accumulated CENVAT credit rather than only from PLA.
No statutory obligation requires payment of central excise duty solely from the Principal Ledger Account (PLA); where CENVAT credit has accumulated, duty may be discharged by debiting the CENVAT account. Instructions from a Range Superintendent to pay through PLA are administrative and may reflect departmental collection preferences or targets rather than a legal compulsion.