Which excse duty will aplicable for rate difference bill

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AJIT GAIKWAD

ACCOUNTANT

25 Points Posted on 01 December 2015

Sir,

We are supplying the automobiles parts to an automobiles co. we had supplied some parts during the time of Jan- 2014 to March-2015, now automobile company has increased & amended the purchase order retrospectively the price of our parts supplied to them from our co.

Now, we have to raise the supplementary invoice due to the rate revision for duty difference but, the rate of excise duty has been change from 12% +EDU CESS 2% + S&H CESS 1% to BED 12.5 % from 01.03.2015., So if today, I want to raise the Excise invoice what should be the rate of Excise duty i.e 12%+2%+1% or 12.5 %.

Pls. give your opinion on the issue with supporting rules, regulation, case law etc.

Replies (2)

Nikhil Sharma

Government Service

277 Points Posted on 01 December 2015

Applicable rate will be 12.36%. as per Rule 5 of central excise rules,2002.

Rule 5. Date for determination of duty and tariff valuation. -

(1) The rate of duty or tariff value applicable to any excisable goods, other than khandsari molasses, shall be the rate or value in force on the date when such goods are removed from a factory or a warehouse, as the case may be.