Show Cause cum Demand Notice

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Priyanka

Manager - Commercial

33 Points Posted on 02 April 2011

Hi all,

Our company sells products under 5911.90.90. On 07.07.2009 the rate of duty has been changed to 8% from 4%. On 28.02.2010 all 8% became 10%, no info about 4%. So we continued billing charging 4% C.EX.

Now few days back the fact is revealed, and suddenly they issued a demand notice. Now the question is that we haven't surpress the fact and the fact in shown in ER-1 return, is there any way out e.g., Time Bar Clause..etc.

I know ignorance is not an excuse but is there any clause to safeguard us.

BR.

Priyanka

Replies (4)

U S Sharma

glidor@gmail.com

21670 Points Posted on 02 April 2011

you have to reply the demand and apply to addl comm CE for stay, also u have to pray for installment of dues, which may be considered on personal hearing against adhoc payment of some amount priliminary.

There is no excuse to revenue with held, but on genuine grounds the appealete authority may allow u time limit for payment of dues.

Pinky Agarwal

Chartered Accountant

459 Points Posted on 04 April 2011

Your demand may be reduced or waived as there is no willful suppression on your ground but you have to fight for the same..

DAYANANDA K N

ACCOUNTS EXCECUTIVE

541 Points Posted on 05 April 2011

There are 2 time limits specified under for SCN

1) If duty evasion with wilful misstatment ,suppression of facts etc than time limit for issuing SCN is 5 years

2) In cases of other than above it is 1 year.

Chirayu Kothi

Consultant Excise and Service Tax

388 Points Posted on 28 February 2012

your penalty can be wived but you have to pay differencial excise duty of watver you charged less and interest. You have not mentioned any amount so it not advisable to tell u about time barred deamand and other implications.

mail your query to: kothica @ gmail.com