Penalty 1%

[Rajan Rajan]

Dear Sir,

 

Rule 3A CE 2002 : Penalty 1% calculated from the due date or after 30 days of grace period.

 

Please guide.

 

 

 

 

[KASTURI SETHI]

It is Rule 8 (3A) of CE Rules, 2002 and not Rule 3A. Suppose CE duty for the month July,16 is to be paid by 6.8.16 and duty is not paid by 6.8.16; penalty @ 1% on such amount of duty not paid, is to be calculated/paid from 6.8.2016 (due date) till the default period continues.

AI Summary

Penalty one percent on delayed central excise duty calculated from due date until default continues. Penalty of one percent on unpaid central excise duty accrues from the statutory due date and remains payable for the duration of the default under Rule 8(3A) of the Central Excise Rules, 2002.