Effect payment of penalty 1% under sub section (6) of section 11A of CEA

[Pradeep Jain]

Sir, Differential excise duty paid during the audit from 2010to Mar 14 along with interest .Now department insisting to pay penalty under above section. if we pay to same department will not service notice under para(i) of sub-section (7) of section 11A and all proceedings deemed to be concluded. Please confirm & after that any restrictions  to the customer to avail CENVAT credit of such payment of Differential Excise duty or their jurisdiction may issue SCN against such CENVAT Credit.

Regds

Pradeep

AI Summary

Voluntary payment under section 11A(6) stops further proceedings once duty, interest and prescribed penalty are paid and notified.
Voluntary payment during audit of duty, interest and a prescribed monthly penalty, with written intimation to the officer, prevents service of a show cause notice and renders proceedings concluded for the amount paid; if short paid the officer may recover the deficit with the one year limitation from receipt of the intimation. After such payment the supplier may issue a supplementary invoice to pass CENVAT credit, subject to prohibition where non payment arose from fraud or similar grounds under the CENVAT Credit Rules.