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

Clarification on 1% penalty under Central Excise: Correct reference is Rule 8(3A), not Rule 3A, for July 2016 duty. A query was raised regarding a 1% penalty under Central Excise rules. The issue was clarified by correcting the reference to Rule 8(3A) of the Central Excise Rules, 2002, instead of Rule 3A. It was explained that if the Central Excise duty for July 2016 is not paid by the due date of August 6, 2016, a penalty of 1% on the unpaid duty amount is applicable from the due date until the default period ends.