Interest and penalty on delayed payment of Exice duty and return

[CMA VENKATESHAM MUTA]

Sir,Please clarify me the following doubt.ED payable is rs 10000 on 6th aug-15But payment and return filed on 25-09-2015,Int. Paid is rs. 150,Penalty paid rs. 100,Penalty for delay in return paid 1400 (per day rs. 100)As on today what amount should I pay towards interest and penalty.Kindly clarify my doubt

[CMA VENKATESHAM MUTA]

Sir,In the above case duty paid rs 11650, along with the return on 25-09-2015

[Rajagopalan Ranganathan]

Sir,

The amount of duty to be paid is ₹ 10.000/- There is a delay of 50 days in depositing the duty. The rate of interest is 18%. Therefore the amount of interest payable will be ₹ 247. Penalty for delayed payment of duty is 1% if the defaulted amount for the period of delay of two months. It works out to Ts. 17. Therefore the total amount to be paid is ₹ 10,264/-. The relevant rule is rule 8 of Central Excise Rules, 2002.

In respect of return you have to file it on or before 10.8.2015. But you have filed it on 25.9.2015. Therefore there is a delay of 45 days. This attract a penalty of ₹ 4,500/- (45 days x ₹ 100/- per day) vide sub-rule 6 of rule 12 of Central Excise Rules, 2002.

[CMA VENKATESHAM MUTA]

Thankq very much air,In the above case duty paid full and interest and penalty paid partly on 25-09-2015.What amount should I pay as on today,Whether interest and penalty to be calculated on duty amount from due date or 25-09-2015.Pls clarify me sir

[Rajagopalan Ranganathan]

Sir,

Since you have paid duty in full on 25.92015 and you have filed the return on 25.9.2015, you have to pay interest and penalty up to 25.9.2015 only. I have calculated the amounts on the above basis only. Even if you pay interest and penalty partly you pay the remaining amount of penalty and interest immediately. No interest on interest and interest on penalty is payable.

[CMA VENKATESHAM MUTA]

Thanks a lot Sir

AI Summary

Interest and Penalties for Late Excise Duty Payment: 18% Interest and 1% Penalty Applied. Total Payable: 10,264. A forum participant inquired about the interest and penalties due for a delayed excise duty payment of 10,000, initially due on August 6, 2015, but paid on September 25, 2015. The interest rate is 18%, resulting in 247 interest for a 50-day delay. A penalty of 1% for two months totals 17, making the total payable 10,264. Additionally, a 45-day delay in filing the return incurs a 4,500 penalty. It was clarified that interest and penalties are calculated up to September 25, 2015, with no further interest on penalties.