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Indirect taxes

Lux (designation) (44 Points)

08 August 2012

Please answer the following questions:

1) If duty + interest + penalty is paid short u/s 11 A (6) of central excise ,then Show cause notice U/s 11 A (1) will be issued by the central excise officer. Now at what rate penalty will be levied in Show cause notice ?

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5 Replies

CA Sonia Vanjani (Assistant Manager Finance) (45 Points)
Replied 08 August 2012

1% per month frm date of payment of duty subject to max of25% as per sec 11a(6) coz its voluntary paymrnt before issue of scn in case of captured fraud But if scn has been issued then it wud be 50% of ed nd if the same is paid within 30 days den 25% of ed

Lux (designation) (44 Points)
Replied 09 August 2012

will you please more clarify .....now the scn will be issued for the first time ....in this scn rate of penalty will be 1% or 50 % ....this has been not clarified properly in the book also ...only said that scn will be issued as per sec 11 A (1)

CA Sonia Vanjani (Assistant Manager Finance) (45 Points)
Replied 09 August 2012

scn tabhi issue hoga wen something in excess of wat is alrrady paid is to be recovered.. Nd penalty 50% hogi on d excess amt which is to be recovered nd this wud be reduced to 25% if d person pays demand in 30 days

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