Rate of Excise duty in case of Supplementary Invoice

[Sanjay Sharma]

Rate of Excise duty in case of Supplimentary Invoice

Dear Sir,

We are supplying the automobiles parts to an automobiles co. we had supplied some parts during the time of Jan- 2012 to March-2012, now automobile company has increased & amended the purchase order retrospectively the price of our parts supplied to them from  our co.

Now, we have to raise the supplementary invoice due to the rate revision for duty difference but, the rate of excise duty has been change from 10% to 12% from 17.03.2012.,   So if today, I want to raise the Excise invoice what should be the rate of Excise duty i.e 10 or 12%.

Pls. give your opinion on the issue with supporting rules, regulation, case law etc.

 

Regards,

Sanjay Sharma

AI Summary

Automobile parts supplier disputes excise duty rate on retrospective price amendment; 10% rate deemed applicable under Rule 5. A company supplying automobile parts faced a retrospective price amendment by a client, necessitating a supplementary invoice. The issue was whether to apply a 10% or 12% excise duty rate, given a rate change on March 17, 2012. Respondents advised that the applicable rate is 10%, the rate at the time of the original clearance, according to Rule 5 of the Central Excise Rules, 2002. They also noted the need to pay interest from the due date until payment, and referenced relevant case law to support this interpretation.