Differentials excise duty

[vuchcholla Bhaskar]

Dear Sir,

One of our supplier duty charged 12.5% instead of 15% and now they need to pay the differentials duty from Aprl'16 to till date.

Now the supplier which document is to be raised and how we will take the modvat benifit.

Thanks & Regards

Bhaskar

[MUKUND THAKKAR]

please advise your supplier to raise supplymentary invoice giving by reference of old invoices. take cenvat credit on basis of supplymentary invoice issue by your supplier.

[Mahir S]

YES, the supplier shall have to raise supplementary invoices as explained above.

However, the supplier shall also be liable to pay interest for such differential duty passed by them.

[Ganeshan Kalyani]

Mukund ji , i endorse your view. Also interest is applicable as said by Mahir ji.

AI Summary

Supplier Must Pay Differential Excise Duty from April 2016; Issue Supplementary Invoices for CENVAT Credit Claim. A supplier charged an excise duty of 12.5% instead of the correct rate of 15% and now needs to pay the differential duty from April 2016 onwards. To address this, the supplier should issue supplementary invoices referencing the original invoices. The recipient can then claim CENVAT credit based on these supplementary invoices. Additionally, the supplier is liable to pay interest on the differential duty. This consensus was reached among participants in the discussion, who agreed on the procedure and the interest liability.