Payment of arrears from Cenvat Credit earned at a later date.

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..... rals, All Chief Commissioners of Central Excise (including LTU), All Commissioners of Central Excise (including LTU). Sir/ Madam, Subject: Payment of arrears from Cenvat Credit earned at a later date Reference was received from the field formation seeking clarification on the issue as to whether the arrears of duty can be paid by utilizing the cenvat .....

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..... ld formations points out that in majority of cases the payment of demands confirmed under Section 11A are being permitted to be paid by utilizing cenvat credit without linking the same to the period to which these demand pertain. 4. A harmonious reading of rule 8 of Central Excise Rules 2002 and first proviso to rule 3 (4) of the Cenvat Credit Rules, 2004 indicates that the restri .....

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..... A where generally the duty is determined by the Central Excise officer and the payment is mandated after such determination. There is no time limit prescribed under Section 11A i.e., monthly or quarterly unlike the date prescribed under Rule 8 (i.e., 5 th of the next month). Therefore, the restriction on the utilization of the cenvat credit accruing subsequent to the last date of the month o .....

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