Dear Friends,
We have availed credit based on the excise invoice issued by Vendor. The duty value wrongly printed in the invoice as Rs. 10 lacs. It is FOC invoice & duty mentioned only for valuation purpose. Since the basic accounted at Rs. 1, we also not noticed at the time taking credit at our end. After 4 years ,excise department found that vendor paid department for the same invoice Rs. 1 lac only and asked us to reverse the excess credit availed on the document. ie Rs. 9 lacs along with interest.
Need your inputs, how to avoid payment of interest in this case. Vendor not informed either the error/mistake of printing wrong duty on invoice nor the correct payment of duty to Govt.
Suggest me - how to proceed.
CAclubindia
