Invoice wrong issue

[Asked by Guest]

R/sir, Due to system problem we have generate Invoice & despatch FG material without payment of duty ( System not calulate duty ).This problem heighlighted in audit.What imlication for this mistake .please guide . snehal shah

[SANJEEV JADHAV]

Dear Snehal,

Please pay duty, ed. cess and higher sec. ed. cess along with interest 13% on the unpaid duty amount and file the declaration under Sub-section 2 of Section 11A of the Central Excise Act 1944 to your Jurisdictional Excise office. Then no action will be intiated against you for the short duty payment. Please do all above before issue of show cause notice from the department.

[Snehal Kulkarni]

the Only option is to pay the duty along with interest 13%PA before issuance of the SCN.

This will avoid the Penalty.

[CASeetharaman KC]

I agree with my learned friends but what is also important is whether this issue was informed to the department in writing and whther the tax was remitted at the earliest. If this is not done then department can also claim suppression of facts

AI Summary

Duty payment and declaration can prevent departmental action if unpaid duty, interest and cess are remitted promptly.
Immediate payment of the unpaid duty with education cess and higher secondary education cess, payment of interest as applicable, and filing a declaration under Sub section 2 of Section 11A to the jurisdictional excise office before issuance of a show cause notice will avoid departmental action; failure to inform the department in writing or to remit tax promptly may lead the department to treat the omission as suppression of facts.