Dear Sir,
This is to inform u that as per excise law “Because Rule 5 of Central Excise Rules, 2002 is the governing rule and accordingly , duty 12.36% along with interest from the due date till the date of payment.” And such case is applicable on VAT ,
or Interest applicable on supplementary invoice under CST Act or VAT Act because Excise and CST or VAT both are Indirect tax.
Regards
Arjun Sachdeva
Interest on Supplementary Invoices: No Interest Required if Price Increase Beyond Control, Per Rule 5, Central Excise Rules 2002 A query was raised regarding the applicability of interest on supplementary invoices under the Central Sales Tax (CST) Act and VAT, referencing Rule 5 of the Central Excise Rules, 2002, which mandates a 12.36% duty with interest from the due date until payment. The response highlighted that while statutory interest is generally payable, various tribunal judgments have ruled that interest is not required for supplementary invoices if price increases are beyond the assessee's control. Under the CST Act, interest payment can be postponed until assessment by the authorities, and payment is only necessary if demanded by the assessing authority. (AI Summary)
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