kumar delhi (NA) 02 February 2013

Late filling of excise return and late payment of duty

We have a manufacturing unit in Noida and Bangalore. Our Bangalore unit was setup in Sept 2011 and we are filling the excise returns and duty timely, however between July to Sept 2012, the accountant had left suddenly and there was no accountant. Due to this we had filled the ER-1 return for these months in Nov 2012 and the excise duty also we had deposited in Nov 2012 alongwith the Interest @ 18%.

But now the Excise Inspector is telling that since we had not paid the duty during July to Oct 2012, so we are defaulter and we are not eligible to avail the Cenvat Credit during these months. So the Cenvat Credit availed for this period should be deposited immediately through PLA. And we can utilise this credit in future months.

Kinldy suggest the best option, as the amount of Cenvat Credit is Rs 30 Lacs and we are not able to deposit this huge amount through PLA.

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2 Replies

Ramesh Chandra Verma (advocate) 03 February 2013

Inspector is right in asking you deposit the amount in cash. But there are judgments, which states that when interest is also paid on the delayed amount,payment made through Cenvat credit is good. pl. satisfy them, otherwise a Notice will be issued to you with clause of equal penalty.

R C Verma

advrcverma@gmail.com

09810525780

Arun Kumar Singh (Advocate) 16 March 2013

If the assessee defaults in payment of duty beyond thirty days from the due date, as prescribed in sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilizing the CENVAT credit till the date the assessee pays the outstanding amount including interest thereon; and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these rules. After the payment of duty from PLA account you can take the cenvat at that particular period.