TMI BlogPayment of InterestX X X X Extracts X X X X X X X X Extracts X X X X ..... cases where duty is not paid on account of fraud, suppression etc., the interest will be chargeable from the 1 st date of the month following the month in which the duty was not paid. Other points to be noted regarding section 11AB - · Such rate cannot be less than 10% and not more than 36% per annum and as fixed by the government from time to time. The rate has been fixed at 13% w.e.f. 12-9-2003. · The provisions of section 11AB as amended w.e.f. 11-5-2001 by the Finance Act will apply only to the cases, where the amount of duty had become payable or ought to have been on or after 11-5-2001. · Sometimes, Board issues orders, instructions or directions under section 37B for the uniformity of duties of excise. If the assessee p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been taken or utilized wrongly, the same shall be payable along with interest as per provisions of section 11A and 11AB of CEA. If the 'amount' which is payable under Rule 6 of Cenvat credit rules is not paid, the same can also be recovered along with interest. Penalty is also leviable in case of wrongful utilization of Cenvat credit on inputs, capital goods and input services . For details regarding penalty on wrongful utilization of Cenvat credit refer Cenvat credit section. 3. On the amounts collected in excess of the duty [interest payable as per section 11DD] - As per section 11DD, where an amount has been collected in excess of the duty assessed or determined or paid on any excisable goods from the buyer of such goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of application under section 11B(1), the Department, shall, in addition to the amount to be refunded as determined under section 11B, be liable to pay interest. · Interest shall be payable for the period of delay after the expiry of 3 months, from the date of receipt of application of refund till the date of refund of duty. · Such interest will not be less than 5% and not more than 30% per annum and as fixed by the government from time to time. The rate has been fixed at 6%. · Other points to be noted w.r.t. interest - · No interest is payable in respect of fines and penalties. · In case assessee loses in appeal, interest will be payable right from the original demand and not from the date when the appeal is decided. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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