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Penalty

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Ramesh kumar

Manager - Central Excise

126 Points Posted on 19 October 2013

One assessee default for duty payment on 05.06.2013 of payment for the month of May'13. Payment made on 10.07.2013. After grace period ie. 30 days assessee removed goods duty involvement is 11 laks. grace period 01.06.2013 to 30.06.2013, but payment made on 10.07.2013. between 01.07.2013 to 10.07.2013 above said goods removed. So what penalty may be imposed by department.

Replies (1)

CA LOVELY ARORA

C.A. B.Com (H) Graduate

2151 Points Posted on 19 October 2013

Dear Sir,

It shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in CER, 2002 shall follow.

The provisions of section 11 of the Act shall be applicable for recovery of the duty as assessed under rule 6 and the interest under sub-rule (3) in the same manner as they are applicable for recovery of any duty or other sums payable to the Central Government.

Penalty u/r 25 : Rs. 2000 or Duty, whichever is higher + Confiscation of goods.

The above penalties and consequences are only in regard to good removed within the specified period, and the penalty/interest for other defaults would be in addition.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com