Transfer of pla credit balance ...
This query is : Resolved
04 September 2012
In one of our unit, we opted new excise registration of manufacturing due to change of name of unit after amalgamation.
We have applied for transfer of Cenvat Credit u/r10 Cenvat Credit Rule 2004.
My query is, how we can transfer the credit of PLA balance lying with our earlier unit,
we can not utilized the same during removal of material.
We have applied for transfer of Cenvat Credit u/r10 Cenvat Credit Rule 2004.
My query is, how we can transfer the credit of PLA balance lying with our earlier unit,
we can not utilized the same during removal of material.
14 September 2012
All Experts,
Please reply to my above query imm.
Please reply to my above query imm.
02 August 2025
Regarding transfer of PLA (Personal Ledger Account) credit balance after a change in excise registration due to amalgamation:
---
### Key points:
1. **Transfer of Cenvat Credit under Rule 10 of Cenvat Credit Rules, 2004**
Rule 10 provides for transfer of Cenvat credit in case of change in the constitution of a manufacturer or provider of input services, including amalgamation.
2. **PLA balance transfer**
The PLA balance represents the **cash or credit balance available with the Central Excise Department** for your earlier unit.
3. **Utilization of PLA balance**
Generally, PLA balances **cannot be transferred electronically or credited to the new registration** like Cenvat credit. It is tied to the old registration.
---
### How to handle PLA balance on change of registration/amalgamation?
* **Approach Excise Authorities:**
You need to request the excise department for **refund of the PLA balance** lying with the old registration/unit.
* **Refund Procedure:**
* File an application for refund of PLA balance (cash or credit).
* Submit all relevant documents about the amalgamation/change of name.
* The excise authorities may refund the amount in cash or by issuing a fresh credit in the new registration.
* **Utilization before transfer**:
Since PLA balance **cannot be utilized under the old registration for removal of goods after change in registration**, it must be either refunded or transferred by the department's approval.
---
### Summary
| Action Required | Remarks |
| --------------------------------------------------------------- | --------------------------------------------------------- |
| File refund application for PLA balance with excise authorities | PLA balance not transferable electronically under Rule 10 |
| Await approval & refund or credit to new registration | Department discretion, usually refund in cash |
---
If you want, I can help draft a refund application or guide you on documents required for PLA refund. Would you like that?
---
### Key points:
1. **Transfer of Cenvat Credit under Rule 10 of Cenvat Credit Rules, 2004**
Rule 10 provides for transfer of Cenvat credit in case of change in the constitution of a manufacturer or provider of input services, including amalgamation.
2. **PLA balance transfer**
The PLA balance represents the **cash or credit balance available with the Central Excise Department** for your earlier unit.
3. **Utilization of PLA balance**
Generally, PLA balances **cannot be transferred electronically or credited to the new registration** like Cenvat credit. It is tied to the old registration.
---
### How to handle PLA balance on change of registration/amalgamation?
* **Approach Excise Authorities:**
You need to request the excise department for **refund of the PLA balance** lying with the old registration/unit.
* **Refund Procedure:**
* File an application for refund of PLA balance (cash or credit).
* Submit all relevant documents about the amalgamation/change of name.
* The excise authorities may refund the amount in cash or by issuing a fresh credit in the new registration.
* **Utilization before transfer**:
Since PLA balance **cannot be utilized under the old registration for removal of goods after change in registration**, it must be either refunded or transferred by the department's approval.
---
### Summary
| Action Required | Remarks |
| --------------------------------------------------------------- | --------------------------------------------------------- |
| File refund application for PLA balance with excise authorities | PLA balance not transferable electronically under Rule 10 |
| Await approval & refund or credit to new registration | Department discretion, usually refund in cash |
---
If you want, I can help draft a refund application or guide you on documents required for PLA refund. Would you like that?
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