interest on supplimentary invoices., Central Excise

[sanjeev jadhav]

Dear Sirs, recently we come to understand from audit  party that their is no need to pay interest on supplimentary invoices. Can we get notification / cirular / bill for the same.

Posts / Replies

[RAMESH PRAJAPATI]

Dear Mr Sanjeev,

It appears there is some confusion. If you raise supplimentary invoice to increase price of goods, you will have to pay excise duty alongwith interest. It has been confirmed by the Supreme Court of India in the matter of CCE vs SKF India Ltd  (2009 (7) TMI 6 - SUPREME COURT) = (2009 (239) ELT 385 (SC).

Thanks.

Ramesh

[Pradeep Khatri]

If additional excise duty or service tax is paid later, interest will become payable.  But, CENVAT credit of such interest will not be available.