Sir,
We do supply automobile components on the bais of PO where is rate and quantity are mentioned. However, we use to get rate increases from th e said Customer from past period . For getting the increased value of the past period, a supplimentary invoice is issued by the Company and appropriate differential excise duty is paid thereon.
Our Query is that:-
Do we need to pay interest on the differencial excise duty , as above, paid by the company. ?
Pl. give us your Expert Legal Opinion.
Regards
Pradeep Jain
Interest Required on Differential Excise Duty for Past Invoices Under Section 11AB, Confirms Supreme Court and Ministry of Finance. A company supplying automobile components issues supplementary invoices for rate increases from past periods, paying the appropriate differential excise duty. The query raised is whether interest must be paid on this differential excise duty. Responses indicate that interest is indeed payable under Section 11AB, as clarified by legal provisions and confirmed by the Supreme Court in the case of Commissioner of Central Excise, Pune v. SKF India Ltd. The legal opinion is supported by a Ministry of Finance letter and a Supreme Court ruling affirming the liability of interest on such differential duties. (AI Summary)
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