Penalty of Excise after due date of payment

[Umesh Talanpuri]

Dear Sir/Madam

I am small scale Ind. I am paid Excise duty regulary. but last July-13 Payable amt. 120000/- on due date 05/08/2013, My Cenvat credit Rs. 45000/-. Now Balance amt of payable Rs. 75000/-. my accountant made mistake in taken credit, he was taken Rs. 55000/- instead of 45000/-. Rs. 10000/- excess credit taken in Part-II, now balance payment Rs. 65000/- paid by GR-7 instead of 65000/-..inquiry by Excise dpar. I am pay difference with interest. on 10/09/2013. 

please advice me, can i faulty in payment . 

 

AI Summary

Small Industry Avoids Penalty for Excise Duty Error by Settling with Interest Before Show-Cause Notice Under Central Excise Rules. A small-scale industry faced an issue with excise duty payment due to an accounting error, resulting in an excess credit of Rs. 10,000 being taken. The balance amount was paid with interest after an inquiry by the excise department. Respondents advised that since the duty was settled with interest, the matter is resolved, and a penalty is unlikely unless a show-cause notice is issued. They cited the Central Excise Rules and a precedent from the Apex Court, indicating no penalty is due if payment and interest are made before such notice.