14% excise Duty

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Sirs,

w.e.f. 08.12.08 the Excise Duty has reduced from 14% to 10%.

But due to non-awareness some of the suppliers making invoice by charging 14% Excise duty for another 3 to 4 days. i.e upto 12th Dec.'08.

In this case, can we avail the 14% credit  as per Invoice or  10% only allowable.

please guide me.

email: elkanagu @ gmail.com

Replies (5)

as we have made payment of 14% we will take credit of 14% itself and not 10%

suppose for example if the duty would have been increased to 18% then also we would have been allowed to take credit of 14% only.

Sir,

Actually we booked the Invoice as per Invoice i.e. 14% Excise + Cess.

The payment for that Invoice will be made after 60 days.

Now our Excise consultant says that you should not take 14% credit ,even if the supplier charged and paid 14% Excise in their end.

Today is the last date to file the Excise Return, we are in confussion. Because, Our supplier told that we already submitted the monthly return and how can we alter the Invoice.

But my consultant told to take only 10%.

 

 

yes u can take credit of excess duty paid becz the seller can't claim the refund due to principal of unjust enrichment. 

As per Cenvat Credit Rules, you are eligible to take credit of the excise duty paid by you as per the invoice. When the invoice is charging 14% duty, you are eligible for that credit.

It is not the buyers work to examine the assessment done by the supplier. He has a right to assess the duty and pay duty as per his understanding of law. A buyer has no right to challenge the assessment. Thus whether hs has paid duty correctly or erroneously, it is not buyers concern. He is entitled to ake credit of the duty amount which he has paid.

This legal issue is settled in numerous judgments that buyer is entitled to credit to whatever duty he has paid, rightly or wrongly. Buyer cannot be penalised for suppliers mistake.

Take credit of 14% without any doubt.

Thank you very much.

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