ccr rule 5A

[Anil Jangid]

can any one explain rule 5A,12 CCR 2004 and their interrelation
 

[Ganeshan Kalyani]

What is your query and what reference you are seeking explanation of the rules.

[Rajagopalan Ranganathan]

Sir,

Please take the advice of a consultant in your case. This is to be explained to you by referring to the notification 20/2007-CE which cannot be done in this column.

[KASTURI SETHI]

Why such a vague query by Sh.Anil Jangid ? Why not a clear cut query ? Why such__________ ??? I wholeheartedly support the expressions of all three experts i.e. Sh.Ganeshan Kalyani ji, Sh.Rajagopalan Ranganathan Ji and Sh.Mahir S.

[DR.MARIAPPAN GOVINDARAJAN]

You, youself can read the Said Rules and infer yourself the interrelations and if any doubt is there please come to this forum.

Dear experts ,

please note we are clearing the finished product under payment of applicable duties ,But we had not paid the excise duties for clearance made on October 2015 yet .On the other hand we will be paying the duties along with interest ,is there any procedure that the duty must be paid on certain period from the due date ,if so please provide some notification or circular for follow up.thanks

[Mahir S]

Akbar ji,

Kindly refer to sub rule (1) , (3) and (3A) of rule 8 of Central Excise Rules 2002 - Manner of Payment.

[Mahir S]

Sir,

It is requested that henceforth a new query pertaining to different issue should be separately raised.

[Rajagopalan Ranganathan]

Sir,

Sub-rule 3, 3A and 4 of rule 8 of Central Excise rules,2002 stipulates that-

If the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with an interest at the rate of specified by the Central Government vide notification under section 11AA of the Act on the outstanding amount, for the period starting with the first day after due date till the date of actual payment of the outstanding amount.

(3A) If the assessee fails to pay the duty declared as payable by him in the return within a period of one month from the due date, then the assessee is liable to pay the penalty at the rate of one per cent. on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues .

Explanation.- For the purposes of this sub-rule, 'month' means the period between two consecutive due dates for payment of duty specified under sub-rule (1) or the first proviso to sub-rule (1) , as the case may be .

(4) The provisions of section 11 of the Act shall be applicable for recovery of the duty as assessed under rule 6 and mentioned in the return filed under these rules, the interest under sub-rule (3) and the penalty under sub-rule 3(A) in the same manner as they are applicable for recovery of any duty or other sums payable to the Central Government.

Explanation.- For the purposes of this rule, the expressions duty or duty of excise shall also include the amount payable in terms of the CENVAT Credit Rules, 2004.

The above provisions are self-explanatory and I hope these provisions will solve your doubt.

 

[KASTURI SETHI]

It is a serious offence. Now you will have to pay heavy penalty under Rule 8(3A) in addition to interest. Why to suffer ? What is avoidable, should be avoided. Penalty could have been avoided.

MANY THANKS FOR ALL WHO HAS SHARED YOUR VIEWS IN INFORMING US THE IMPACT OF THE SAID ISSUES .WILL BE PAYING IMMEDIATELY .HATS OF ALL

AI Summary

Late payment of excise duty triggers interest and recurring penalty, with recovery under standard government collection mechanisms.
Unpaid excise duty declared in returns must be paid with interest from the first day after the due date until actual payment, and amounts unpaid beyond one month attract a monthly penalty; recovery of duty, interest and penalty follows the same procedures as recovery of other sums payable to the Government. Amounts payable in terms of CENVAT credit rules are treated as duty for these purposes, and taxpayers are advised to consult the applicable payment and notification provisions and to pay promptly to avoid penalty.