PAYMENT OF DUTY - Central Excise Practice Manual (OLD) - Central Excise

6. PAYMENT OF DUTY 6.1 Manner of payment of duty: As per Rule 8, payment of duty is to be made on monthly basis by 5 th day (6 th day in case of e-payment) of the succeeding month. The duty for the month of March is, however, to be paid by 31 st March itself. In case of a manufacturer availing exemption based on the value of clearances during a financial year (SSI exemption), the duty for a month is liable to be discharged by 15 th day (16 th day in case of e-payment) of the succeeding month. The assessees may, at their option, make payment of duty consignment-wise. Once the assessee has deposited a cheque in bank within the due date and the same is honoured or pays in cash/draft and the bank gives receipt stamp on the GAR-7 Challan, the same shall be treated as credited to the account of the Central Government. 6.2 Electronic Payment: E-payment is a hassle-free mode of payment besides the conventional method of payment offered by the banks under specific security norms of the Reserve Bank of India. This scheme facilitates anytime, anywhere payment enabling instant generation of cyber receipt once the transaction is complete. It provides the convenience of making online payment of Central Excise duty through Bank's Internet banking service. 6.3 Procedure for Payment: The customer should log on to the Bank's Internet site after entering the user Id and password provided to them by the Bank. They should fill in the on-line Challan. The customer should select the appropriate type of tax from the pop up menu and enter the duty amount. Thereafter, the Challan should be submitted electronically. The customer has to enter his User Id and Password to enter the secured e-banking area. The customer should select the account for debiting the total tax amount and authorize the payment. 6.4 Advantages of e-filing: Ease of operation and convenience. Facility is available 24x7. No queue and waiting. Online filling of single Challan. Minimum fields of the Challan need to be filled. Most of the fields are populated automatically. Selection of tax type is from the drop-down menu. Instant Cyber receipt with bank's transaction number is made available. The acknowledgement of the Challan gets delivered at the customer's address. The assessee can also see the details of tax payment on https://nsdl.co.in by entering the CIN contained in the acknowledgement of the Challan. 6.5 Account current and Cenvat account: The duty can be discharged by debiting the account current (also referred to as Personal Ledger Account [PLA]) and by debit to the CENVAT Credit Account maintained by the assessee under the provisions of the CENVAT Credit Rules, 2004 . The amount of duty deposited in the Bank can be credited to the account current (Personal Ledger Account). 6.6 Action in case of default: As per Rules 8(3) and 8 (3A), when the assessee fails to pay the duty by the due date, he shall be liable to pay the outstanding amount along with interest at the rate of 13% for the period starting with the first day after the due date, till the date of actual payment of the outstanding amount. If the outstanding amount of duty along with the interest is not paid within 30 days of the due date, the assessee shall pay the duty for each consignment by debit into the PLA without utilizing the Cenvat credit till the date of payment of the outstanding amount including the interest. In the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in the Central Excise Act and Rules would follow.