Default of Payment of Excise duty....

[SHAH NILAM]

Dear Sir,

My Query is that.. We have default in Payment of Central Excise duty for the month of December 2014. and we all made the Payment on 25th March 2015 along with Interest and Penalty. We have Paid the Penalty from day of 06.02.15, But our Range Superintendent asked to me you have to pay the Penalty from day of 06.01.15.

So, Kindly pl. clarify that for the penalty period.

[MUKUND THAKKAR]

which period you have to cover for calculation of penalty? it is applicable from the month of Jan-2015.

[chetan rachhadiya]

Dear Nilam,

you default in payment of excise duty for the month of december-14 so,due date for payment would be 5th january.

in this case interest would be from 6th january to 25 th march including both days.

AI Summary

Default in excise duty payment: interest accrues from the due date until payment and penalty starts from the same default date.
Default in payment of central excise duty for December results in interest accruing from the day after the January due date until the payment date inclusive, and the penalty period is treated as commencing from the January due date rather than a later month.