Cenvat credit utilisation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2015 Hello

I have query regarding utilization of cenvat available and payment through PLA.

one of my friend who is accuntant also was saying that if you have enough cenvat credit available to set off against excise payable , you can't utilize whole cenvat .
one has to pay at least 20% of amount of excise duty payable through PlA even though one has excess balance in cenvat credit account.

for simplifying my query i am giving example

for e,g
abc has 100rs balance in cenvat a/c
and excise duty payable is 900rs
abc limited can't utilize whole credit
abc limited will pay 20% of 900 through PLA
and remaining they will utilize cenvat.
please guide me in this matter

Arun Kumar Singh

Arun Kumar Singh (Expert)
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11 September 2015 No need to pay 20% duty from PLA account you can utilise the 100% cenvat credit also as per your convenient.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 thank you for your valuable reply sir.
one more point is there that is ca of that accountant said his to do so.
is there any reason behind such advice from professional person.

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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11 September 2015 We cannot say about this matter. If you have any doubt should consult with any professional.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 ok.

Thank you Sir