Penal Interest

[deepak kalambate]

Dear Sir,

Please let me know whether penal interest as per the provision of Rule 8 (3A) of Central Excise Rules, 2002 is applicable when Central Excise duty voluntary paid as per CAS-4 Certificate along with interest @ 18% p.a.

Thanks & Regards

Deepak R Kalambate

AI Summary

Clarification on Rule 8 (3A): No Penal Interest on Voluntary Excise Duty Payments if Provisional Assessment Informed. A participant in a forum inquired about the applicability of penal interest under Rule 8 (3A) of the Central Excise Rules, 2002, when voluntarily paying excise duty based on a CAS-4 Certificate with 18% interest. A respondent clarified that Rule 8 (3A) does not apply in cases of provisional assessment and advised that if the excise department was informed of the provisional assessment, no penal interest should be imposed. The participant further explained their practice of paying differential duty annually based on CAS-4 Certificates and sought clarification on whether any official circulars addressed this issue, emphasizing that no evasion of duty occurred.