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Interest and penalty demand

PRAKASH D GOSAI (MANAGER EXCISE) (55 Points)

14 October 2016

we had paid demand excise duty at the time of audit.. now scn recd for the payment of Interest and penalty..for your information we had not utilized cenvat credit for paying monthly liabilities..

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2 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 14 October 2016

Assuming your question to be related to applicability of interest/penalty, any delayed payment of excise duty attracts interest. In this case, since you have not paid interest, SCN has been issued demanding interest and penalty. If the interest is paid within 30 days of issue of SCN, then no penalty is payable u/s 11AC (assuming it to be not due to fraud/collusion etc).

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Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 15 October 2016

If you have taken the cenvat credit by mistake but not utilized after 1.4.2012 then no need to pay interest. The department cannot be demand the interest and penalty in this particular cenvat credit.