Excise refund

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Hi....

I am working in a Manufacturing Company. We have raised the supplementary invoice on 29 March 2012 (Assume Rs 200000). The date of the parental invoice of supplementary invoice is 31st Oct 2011 (assume Invoice Value Rs 100000).

They are saying that we have to pay interest for the period of parental invoice and the date of supplementary invoice.

We have paid the duty of Rs Rs 24600 i.e 200000*12.3%. The excise people has calculated the duty as Rs 20600/- i.e 200000*10.3%. They have taken the rate of Rs 10.3% because the applicable rate of duty during 31st Oct 2011 is 10.3%.

Here they say 150 days for which we have to pay interest. They have also calculated interest of Rs 1523 i.e 200000*10.3%* (150days/365days)*18%.

My question is.... We have already paid the excess duty of Rs 4000 i.e (Rs 24600-Rs 20600). Whether we can adjust the said interest against the duty we paid excess and claim refund of Rs 2476 i.e (Rs 4000-Rs 1523). If i can adjust excess duty paid under which provision of the excise act.

I am awaiting your suggestions.

Thanks and Regards

Lokendra Prasad Acharya

 

Replies (3)

take challan entry of 24600 in PLA 

pay interest as per their demand of 1523, and debit pla for rs 20600 , and enjoy the balance credit of 4000 for next period. 

take challan entry of 24600 in PLA 

pay interest as per their demand of 1523, and debit pla for rs 20600 , and enjoy the balance credit of 4000 for next period. 

CENVAT credit cannot be utlized for payment of Interest and Penalty. Interest and penalty should pay through PLA Account only- Means by way of Cash. Any exces payment of central excise duty, you can go refund under Section 11B of Central Excise Act, 1944.

More information on refund under Indirect taxes visit https://finact.in/Refund.html


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