interest payment-reg

[Ramakrishnan Seshadri]

Dear Sir,

We need a clarification. We have supplied mould to our vendor. At the time of mould supply the tool cost (amortisation cost) has not been finalised. The vendor has cleared the parts by paying excise duty without amortization cost. Now only the tool cost has been finalised. We have issued the po for the tool amortization cost for the supplies.The vendor has agreed to pay the excise duty for the tool amortization cost towards the quantity supplied by issuing supplimentary invoice. Our question is for this supplimentary invoice for the tool cost the interest has to be paid. who has to pay whether the vendor our ourself. Kindly clarify.

Thanks & Regards,

S.Ramakrishnan

AI Summary

Differential excise duty liability: vendor must pay differential duty and interest; rate fixed at original clearance.
Where mould amortization is finalized after original clearance, the vendor responsible for amortization must issue a supplementary invoice and pay the differential excise duty; the party who underpaid is liable for that differential duty and interest. The duty rate applied for computing the differential duty on the supplementary invoice is the rate in force on the date of the original clearance of the goods.