payment of Interest on differential Excise Duty

[Pradeep Jain]

Dear Sir,

At the time of revision in the P.O. price by our Customer’s, we do pay differential excise duty . At the time of removal of finished goods, but we do not aware that how much price revision will be given by our customer on our claim . In this case is there any liability of interest on differential excise duty paid by us on the incre.mental value recovered from the customer.

We seek your opinion .

Regards

Pradeep Jain

[MUKUND THAKKAR]

Dear Pradeep jain

In case of any additional amount recover from customer which has connect to sales, In such case interest should be payable. generally this happened in case of your company act as a ancillary company of automobiles. rates are provisionally and latter on final. so according to me interest is payable on diff. duty.

[YAGAY andSUN]

Dear Pradeep,

It is settled legal position that interest is payable on differential excise duty payment to the exchequers. Whatever amount your client is getting as differential excise duty, that would come under the purview of payment of statutory interest at the applicable rate.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Interest Payable on Differential Excise Duty Confirmed for Revised Purchase Order Prices Under Settled Legal Position A discussion was initiated regarding the liability of paying interest on differential excise duty when a customer revises the purchase order price. The query sought clarification on whether interest is payable on the incremental value recovered from the customer. Two responses were provided. The first response indicated that interest should be payable on additional amounts recovered from customers, especially in provisional pricing scenarios. The second response confirmed that it is a settled legal position that interest is indeed payable on such differential excise duty payments to the exchequer at the applicable rate.