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

Penalty for delayed excise duty unlikely if duty and interest are paid before issuance of a show-cause notice.
Where excise duty was underpaid due to an inadvertent excess Cenvat credit claim, the taxpayer's subsequent payment of the outstanding duty with interest before initiation of show-cause proceedings is treated as removing the basis for a penalty; Rule 8 compliance timing and the taxpayer's mistake due to ignorance are cited as mitigating factors, though a penalty may still be imposed if a show-cause notice issues prior to payment.