Interest on supplementary Invoices

[MITSUI PRIME ADVANCED]

Dear Sir,

Pl. advice to us we have generate supplementary invoices against price injection and acutal original invoices for the month of Jan  2013

we have paid total Excise duty from Cenvat Account  so in this case interest liability applicable on supplementary pl. advice ,

if we have paid 2 percent or 1 percent duty from PLA then Interest liability

pl. advice in both situation

Thanks & Regards

RajKumar

[YAGAY and SUN]

Dear Rajkumar,

You would have to pay the interest on the differential duty due to price escalation. This is now a settled legal position.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

[MITSUI PRIME ADVANCED]

Dear Sir,

Pl. advice

in both cases

Thanks & Regards

[YAGAY and SUN]

Even if you have paid 2 percent or 1 percent duty from PLA, even then you would have to pay the interest on supplementary invoices.

[Rangarajan DV]

Dear Rajkumar,

When you are paying differential duty in view of the price difference, you need to pay interest charges at the rate of 18 percent pa.  Even the duty is paid through cenvat account also you need to pay interest charges.

K Kanagasabai

[Krishan Gopal]

Where any duty of excise has not been paid or levied or has been short-levied or short paid or erroneously refunded or the differential duty has to be paid while the assessee issued supplementary invoices, would have to be paid along with interest (18 percent per annum) u/s 11AA (from the date of issuing the invoice). It has been confirmed by the Supreme Court of India in the matter of CCE vs SKF India Ltd    2009 (7) TMI 6 - SUPREME COURT  = [2009 (239) ELT 385 (SC)].

AI Summary

Interest on differential excise duty applies to supplementary invoices, payable from invoice date if duty paid from Cenvat or PLA
Interest on differential excise duty arising from supplementary invoices must be paid from the date of issuance of the supplementary invoice, and this interest liability applies irrespective of payment through Cenvat utilisation or payment from the Public Ledger Account (PLA).