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

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..... g 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 credit which has accrued subsequent to the period to which the arrears pertained. Such clarificati .....

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..... o 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 restriction with regard to the utilization of cenvat credit is relating to the normal payment of duty in terms of rule 8 of the Central Excise R .....

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..... t prescribed under Section 11A i.e., monthly or quarterly unlike the date prescribed under Rule 8 (i.e., 5th of the next month). Therefore, the restriction on the utilization of the cenvat credit accruing subsequent to the last date of the month or quarter in which the arrears arise, is not applicable to the demands confirmed under Section 11A of the Central Excise Act, 1944. 6. Trade & Industry .....

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