Payment of Central Excise dues in instalments - Interest on delayed payment of dues - Regarding. - Central Excise - 208/42/96-CX

Circular No. 208/42/96-CX dated 2/5/96 F.No. 289/3/96-CX-9 Government of India Ministry of Finance (Department of Revenue), New Delhi Subject : Payment of Central Excise dues in instalments - Interest on delayed payment of dues - Regarding. I am directed to say that with the introduction of the Section 11AA in the year 1995-96 in the Central Excise and Salt Act, 1944, and with the issuance of Notification No. 21/95- Central Excise (Non - Tariff) (F.No. 268/29/95-CX.8) dated 29.5.1995, a doubt has arisen about the rate of interest to be charged on delayed payments of Central Excise dues. After consideration of the matter, the Board has decided that the rate of interest on delayed payments of central excise dues would be 20% per annum as notified in Notification No. 21/95-CE(NT) dated 29.5.95, even in cases where instalmental facility is allowed. In the old cases also where instalmental facility was granted in accordance with instructions. F.No. 289/10/91-CX.9 dated 18.3.1991, the rate of interest would be the statutory rate i.e. 20% per annum from the date the new Section 11AA came into existence. 2. It is clarified that such inerst would be payable only on the actual amount in balance from time and not on the original amount payable. Sd/- (O.P. Srohe) Under Secretary to the Govt. of India