interest on supplimentary invoices.

[SANJEEV JADHAV]

Dear Sirs, recently we come to understand from audit  party that their is no need to pay interest on supplimentary invoices. Can we get notification / cirular / bill for the same.

[RAMESH PRAJAPATI]

Dear Mr Sanjeev,

It appears there is some confusion. If you raise supplimentary invoice to increase price of goods, you will have to pay excise duty alongwith interest. It has been confirmed by the Supreme Court of India in the matter of CCE vs SKF India Ltd  (2009 (7) TMI 6 - SUPREME COURT) = (2009 (239) ELT 385 (SC).

Thanks.

Ramesh

[YAGAY andSUN]

If additional excise duty or service tax is paid later, interest will become payable.  But, CENVAT credit of such interest will not be available.

AI Summary

Interest on Supplementary Invoices: Payable with Excise Duty Increase per Supreme Court Ruling, No CENVAT Credit for Interest. A query was raised regarding whether interest needs to be paid on supplementary invoices, as an audit party suggested it was unnecessary. Two replies clarified the issue. One response stated that if supplementary invoices are issued to increase the price of goods, excise duty and interest must be paid, referencing a Supreme Court decision (CCE vs SKF India Ltd). The other response confirmed that if additional excise duty or service tax is paid later, interest is payable, but CENVAT credit for such interest is not available.