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Shanmugam Mohan (Audit Accountant)     19 November 2012

Excise duty on short fall quantity

Dear Sir

We are a manufacturer of Ready Mix Concrete. We are entered into a agreement with private parties for supplying the ready mix concrete. One such party not purchasing the the ready mix concrete upto the agreed quantity. As per agreement the shortfall quantity was calculated and billed to party. In that case actually quantity not supplied but the party accept to pay for shortfall quantity amount as per agreement. My Question is whether excise duty applicable for that shortfall quantity or not. One more question is at the time of agreement per quantity is Rs.4500 and billed the same. But later it is fixed for Rs. 5000. Party is accepting to pay the amount including already purchased quantity. Whether excise duty is applicable to already supplied quantity. 

Please suggest me

Thanking You

S.Mohan



Learning

 2 Replies

Ramesh Chandra Verma (advocate)     02 December 2012

You have to pay excise duty on the increased prices also from the retrospective date and also have to pay interest from the due date in the past. The issue of payment of interest from the retrospective date has been finally settled by the Supreme court.

 

R C Verma, advrcverma@gmail.com

0910525780 / 0888 281 281 8

Amitava Chatterjee (Superintendent Central Excise)     10 December 2012

you wil also have to pay duty on the amount collected against short fall quantity.


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