Failed to submit the ARE1 endorsement within 45 days

Our company located in SEZ. we are purchasing goods vide ARE-1. Supplier has to submit the endorsed ARE-1 document to their range within 45 days. but they hae failed to submint within 45 days as we have failed to hand over the endorsed ARE-1 documents to our supplier on time. Now their excise dept. refused to accept the documents as they have expired. They are demanding duty with penalty. our supplier also demanding duty from us. Please advise us whether there is any chance to avoid duty payment in this situation. Please advise me.