Overtime in case of export - depatment view

[Asked by Guest]

we are exporting the goods from factory. during the excise audit, audit party has point out that we have to pay the merchant over time for each export @Rs.585/- whether it is during office hours or after office hours Is this demand of audit department is right or wrong. because they raise the demand and force us paid such demand, at present we have paid such amount UNDER PROTEST.

MOT Charges are not required to be paid under the provisions of Customs (Fees for Rendering Services by Customs Officers) Regulation,1998 for supervision of container stuffing by Central Excise Officers at normal place of work and services provided within normal working hours [Rajashthan Textile Mills v. Commissioner,2007 (216) E.L.T. 380 (Tri.- Delhi)]. Such charges become payable only if the supervision work is undertaken beyond normal working hours. Best Regards, Pradeep Khatri, Consultant - Indirect Taxation, [email protected]

Please refer MOF(D.R)Circular No. 62/97-Cus. (F.No.605/162/97-DBK) dt., 17.11.1997

[Ravi Chopra]

I, like to add further, that MOT charges or any other amount can not be forced by the audit parties to be paid. If they have any issue, you may ask them to report if they want, into their audit report and department would raise a proper SCN to recover the MOT. In this way you should avail the opportunity to personal hearing and present your case before the department. In case you have deposited the amount under protest, in case no SCN is issued within reasonable time, you may proceed to get the refund of the same within allowed time limit.

AI Summary

MOT charges not payable for supervision during normal working hours; liability arises only for overtime supervision.
MOT charges for supervision by Central Excise officers are not payable for container stuffing done at the normal place of work during normal working hours; such charges become payable only when supervision is undertaken beyond normal working hours. Audit teams cannot force immediate payment; any recovery should follow formal departmental proceedings via a show cause notice, and amounts deposited under protest may be claimed back if no proper proceedings are initiated.