Interest on short paid duty.

[VINOD KUMAR]

GOOD MORNING DEAR EXPERTS. extracts from rule 8(3) of CER 2002.'It is hereby clarified that the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date.'As per rule 8(3) the outstanding amount will be paid along with applicable interest. Sir, I have the balance of ₹ 50000 in PLA. Total duty to be paid for November 2014 comes to 150000. Sir what will the outstanding amount for interest if:-(1) I debit ₹ 50000 on December 6 and pay ₹ 100000 by net banking on December 15 by net banking. 2. If I debit ₹ 150000 on December 16 after taking credit of ₹ 100000 deposited on December 15.Please reply. Thanks and regards.

AI Summary

Interest on Short-Paid Duty Explained: Rule 8(3) Clarifies Payment Scenarios and Interest Liability for 150,000 Payment Case. A forum participant inquired about interest on short-paid duty under Rule 8(3) of the Central Excise Rules, 2002, with a specific scenario involving payments and debits totaling 150,000. The participant outlined two payment scenarios and sought clarification on the interest liability. An expert responded, explaining that in the first scenario, interest would be due on 100,000 for ten days. For the second scenario, interest would apply to the entire 150,000 from December 6 to December 16. The participant expressed gratitude for the prompt responses.