Interest on supplementary Invoices

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..... Interest on supplementary Invoices
Query (Issue) Started By: - MITSUI PRIME Dated:- 22-3-2014 Last Reply Date:- 27-3-2014 Central Excise
Got 5 Replies
Central Excise
Dear Sir, Pl. advice to us we have generate supplementary invoices against price injection and acutal original invoices for the month of Jan 2013 we have paid total Excise duty from Cenvat Account so in this case intere .....

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..... st liability applicable on supplementary pl. advice , if we have paid 2 percent or 1 percent duty from PLA then Interest liability pl. advice in both situation Thanks & Regards RajKumar Reply By Pradeep Khatri: The Reply: Dear Rajkumar, You would have to pay the interest on the differential duty due to price escalation. This is now a settled legal position. Regards, Team YAGAY & SUN (Ind .....

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..... irect Tax Consultants) Reply By MITSUI PRIME: The Reply: Dear Sir, Pl. advice in both cases Thanks & Regards Reply By Pradeep Khatri: The Reply: Even if you have paid 2 percent or 1 percent duty from PLA, even then you would have to pay the interest on supplementary invoices. Reply By Rangarajan D V: The Reply: Dear Rajkumar, When you are paying differential duty in view of the price diffe .....

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..... rence, you need to pay interest charges at the rate of 18 percent pa. Even the duty is paid through cenvat account also you need to pay interest charges. K Kanagasabai Reply By Krishan Gopal: The Reply: Where any duty of excise has not been paid or levied or has been short-levied or short paid or erroneously refunded or the differential duty has to be paid while the assessee issued supplementar .....

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..... y invoices, would have to be paid along with interest (18 percent per annum) u/s 11AA (from the date of issuing the invoice). 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)].
Discussion Forum - Knowledge Sharing .....

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