Rate of Excise duty in case of Supplementary Invoice

[YOGESH MITTAL]

Dear Sir,

We are supplying the automobiles parts to an automobiles co. we had supplied some parts during the time of Oct-2014- 2015 to March-2015, now automobile company has increased & amended the purchase order retrospectively the price of our parts supplied to them from our co.

Now, we have to raise the supplementary invoice due to the rate revision for duty difference but, the rate of excise duty has been change from 12.36% to 12.5% from 01.03.2015.,So if today, I want to raise the Excise invoice what should be the rate of Excise duty i.e 12.36% or 12.5%.

In case we have put the 12.36% on Supplementary invoices than have any interest liability is coming or not.

Pls. give your opinion on the issue with supporting rules, regulation, case law etc.

Regards,

Yogesh Mittal

[B. Naga Rami Reddy]

Sir,

Rate of duty will be 12.36% in respect of supplementary invoices raised for the initial clearances upto 28.2.2015 and 12.5% for the initial clearances made from 1.3.2015 as per Rule 5 of Central Excise Rules,2002. Interest under Section 11AA of CE Act 1944, is also payable on the differential duty as per Hon'ble Apex Court judgment in the case of SKF India Ltd. 2009 (7) TMI 6 - SUPREME COURT

[YOGESH MITTAL]

R/sir,

Please suggest on which amount we have to pay the interest,.

[B. Naga Rami Reddy]

Interest is to be paid on the duty paid on enhanced price please.

[Rajagopalan Ranganathan]

Sir,

Interest is to be paid on amount charged in your supplementary invoice from date of initial payment of duty as per original invoice till date of raising the supplementary invoice.

AI Summary

Automobile parts supplier must apply excise duty rate of 12.5% post-March 1, 2015, with interest per Section 11AA. An automobile parts supplier raised a query about the applicable excise duty rate for supplementary invoices after a retrospective price amendment by an automobile company. The excise duty rate changed from 12.36% to 12.5% on March 1, 2015. Responses clarified that the rate should be 12.36% for clearances before March 1, 2015, and 12.5% for those afterward. Interest on the differential duty, as per Section 11AA of the Central Excise Act, 1944, is payable from the date of the initial duty payment to the date of the supplementary invoice, based on the enhanced price.