No paste in place in PS?

How could I never had noticed this? When you cut something out of one layer then want to place it back into another layer in the same position, you cant do it in PS? FW has had this forever (good thing Adobe bought them). Or am Ijust having a brainfart and forgot how to do a paste in place? I know there is paste into. But it is greyed out in this instance.

Any ideas?