Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Late filling of excise return and late payment of duty

869 views

Save Share

DINESH KUMAR

CA Job

21 Points Posted on 02 February 2013

We have a manufacturing unit in Noida and Bangalore. Our Bangalore unit was setup in Sept 2011 and we are filling the excise returns and duty timely, however between July to Sept 2012, the accountant had left suddenly and there was no accountant. Due to this we had filled the ER-1 return for these months in Nov 2012 and the excise duty also we had deposited in Nov 2012 alongwith the Interest @ 18%.

But now the Excise Inspector is telling that since we had not paid the duty during July to Oct 2012, so we are defaulter and we are not eligible to avail the Cenvat Credit during these months. So the Cenvat Credit availed for this period should be deposited immediately through PLA. And we can utilise this credit in future months.

Kinldy suggest the best option, as the amount of Cenvat Credit is Rs 30 Lacs and we are not able to deposit this huge amount through PLA.

Replies (1)

P.Bashista

Advocate

378 Points Posted on 08 February 2013

Dear Sir,

In regard to the default in filing of the ER-1 the maximum amount of penalty which can be imposed upon you is Rs.5000/-. In regard to the default in payment of excise duty the cenvat credit facility could be revoked till the time you start paying duty.