Personal Ledger Account :

(a) Account current: Assessee may pay duty through account current. It is popularly known as PLA (Personal Ledger Account). Any assessee who has obtained 15 digit ECC number from Superintendent can operate a current account.

(b) Debits and credits in PLA: The PLA is credited when duty is deposited in bank by GAR-7 challan. Thereafter, the duty is required to be paid by making a debit entry in the PLA on monthly basis. PLA and CENVAT credit should be used only for payment of excise duty and not for other payment like rent, lines, penalties etc.

(c) PLA to be maintained in triplicate: PLA has to be maintained in triplicate using indelible pencil and both sided carbon. Two copies of PLA and zerox copy of GAR-7 (earlier TR-6) receipted challans shall be submitted along with monthly/quarterly ER-1/ER-3 return.

(d) Practically redundant: However practically, after introduction of monthly payment system,  PLA has become redundant except in the month of March. In the month of March, duty is required to be paid before 31st March. Hence, generally assessee pays higher amount to be on safe side.

(e) CENVAT credit only of inputs received upto end of month: Duty can be paid through PLA and/or CENVAT credit. Excise duty is payable on monthly basis. CENVAT credit available at the end of the month can be availed, even if duty is payable by 5th/6th of following month.

CENVAT credit of all inputs and 50% duty paid on capital goods is available as soon as goods enter the factory, even if book entry is made later. Thus, CENVAT credit is available in respect of all goods received upto end of the month, even if book entry is made later .