Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Time limit of duty excise payable

Balendra Parmar (Finance Manager) (199 Points)

12 March 2012

Dear Sir,

We are manufactured good and than export it based in Gujarat..But in December and january our plant is closed. We have some raw material in stock. We sold it to our subsidairy company in Gujarat. We are prepared excise invoices.But We have not mentioned in the return. The cenvat credit is due more than duty payable.The central excise department given the scrutiny notice for payment of duty with interest. We have mentioned that the cenvat is adjustable agianst the duty payable.But department not agreed with us and imposed the duty and intrest.The action of department is correct ?Please provide sufficient guidance.

Regards,

Balendra Parmar.

Reply
Follow
Share

4 Replies

CA.Ganesh (Practicing Chartered Accountant) (308 Points)
Replied 12 March 2012

You can claim credit provided not availed the benefit of claiming rebate against export

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 March 2012

you have prepared the excise invoice ( duty payable) but not paid the same through cash or from RG23A-Part 2, ( cenvat credit) hence the contention of department is right, its matter of concealment.

Balendra Parmar (Finance Manager) (199 Points)
Replied 14 March 2012

Originally posted by : U S Sharma
	you have prepared the excise invoice ( duty payable) but not paid the same through cash or from RG23A-Part 2, ( cenvat credit) hence the contention of department is right, its matter of concealment.

Dear Sir,

We have mentioned the duty in RG 23 A Part II but we are not mentioed in the ER-1 return.We have lot of confution for describiing in ER-1 return, because in on line filling we have not find more column of clearing, and we have made mistake.Our intention is not concealmet or fruad.What we do?We have lot of cenvat credit due.

regards,

Balendra Parmar.

C.V.R.SARMA (SERVICE) (90 Points)
Replied 15 March 2012

You have stated that, you are having sufficient CENVAT credit in your account to meet the duty requirement. During the months of december and january, it is stated that the plant is closed. In such a case, go back to month prior to december. There at least you should have furnished the CENVAT balances. If it is shown, then you argue that, the said credit should become opening balance for the month of December and hence it caters the duty liability of clearances made during December and January. If inputs/capital goods are duly received in the factory premises and the inputs have been consumed for production , then you will be rightly provided with the CENVAT input credit. There are number of case laws wherein CENVAT credit is provided even in the case of clandestine removals.