WAIVER OF INTEREST IN CASE OF SHORT PAYMENT OF DUTY/SERVICE TAX, Central Excise

[RAM NAUDIYAL]

Dear Experts,

As per Sec 11AA of CEA,1944 the interest has to be paid whether the relevant payment is ade voluntarily or after determination of the amount of duty under section 11A . in the same section there is a proviso that talks about waiver of interest in case of payment of duty within 45 days of order . i cant relate this proviso with the section . it confuses me regarding the point that 11AA interest is itself compulsory then how can lawmakers talk about its waiver in proviso ? please enlight me with proper interpretation . 

Thanks

Posts / Replies

[Pradeep Khatri]

This subsection (3) of the Section 11AA can't be read in isolation, it should be read alongwith the Section 37B of the CEA.

Since, the nature of interest is Statutory, hence it is mandatory to pay, in the event of any voilation of provisions of CE Laws where duty element is involved untill unless it pertain to order 37B.