Concept of PLA Account

PLA Account contains details of duty paid in cash (challan) and how it is utilized against Excise duty liability

Unlike other taxes, in Excise, duty is not paid directly

The amount deposited in GAR 7 challan is deposited in PLA Account and excise duty liability is adjusted against it.

It can be said that

Output Excise Duty

Less

Input (Cenvat)

Excise Duty Liabilty

This excise duty liability is adjusted with PLA Account

Example 1

Suppose in our Excise Duty Computation

Output ED=150000

Input Cenvat=30000

What is ED Payable