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Show Cause cum Demand Notice

1610 views 4 replies

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)

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. 

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

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.

 

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


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