Rate of interest for payment of confirmed demand.

[vinay wakde]

We have received show cause notice on Input services on which we have taken CENVAT credit during Feb, 2014 and utilized for payment of Excise duty. Since, we have find no merits in our case and credit amount is negligible after demand confirmed by the Commissioner (Appeals), we shall be reversing the duty with Interest and Penalty. Kindly let us know Interest rate for relevant period.

Regards,

VINAY

AI Summary

Interest rate for confirmed excise demand is set by effective date; applicable rate depends on payment date.
The interest on a confirmed excise demand is determined by the rate in force on the date of payment: a notification effective 1.4.2016 sets the annual rate at 15% for payments on or after that date, superseding the previous 18%. Administrative practice can apply historical rates for past periods, and a reduced penalty may be available if payment is made within one month of the show cause notice.