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Sec 11 aa- central excise

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mayank agarwal

CA fianlist BCOM(H) CS student

577 Points Posted on 31 October 2012

Dear Members

as per Sec 11AA of CEA , the interest has to be paid whether the relevant payment is ade voluntarily or after determination of the amount of duty under section 11A .

in the same section there is a proviso that talks about waiver of interest in case of payment of duty within 45 days of order .

i cant relate this proviso with the section . it confuses me regarding the point that 11AA interest is itself compulsory then how can lawmakers talk about its waiver in proviso ?

please enlight me with proper interpretation .

regards

Replies (1)

U S Sharma

glidor@gmail.com

21068 Points Posted on 01 November 2012

(b) such amount of duty is voluntarily paid in full, within forty-five days from the date of issue of such order, instruction or direction, without reserving any right to appeal against the said payment at any subsequent stage of such payment.

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here it displays that if the assessee admits the demand without going in appeal and pays the demand within 45 days of order, then on prayer of assesee the interest may be weived. however if the assessee opt to appeal to higher authorities then interest calculation is started and may depend on the outcome of order from higher authorities.,