Payment of Interest, Central Excise

[Srivatsan Krishnamachari]

Dear Learned Friends,

 Liability  towards shot-paid duty or service tax is fulfilled by debiting the cenvat account.. Can interest herein be paid from Cenvat Account or  by only by making cash payment . Is payment of interest from cenvat  account specifically forbidden by the relevant rules.Can you please  clarify this .

Thanks & With Regards,

K.Srivatsan

Posts / Replies

[Pradeep Khatri]

Under Customs Act,1962 Central Excise Act,1944 and Finance Act,1994, Interest and Penalties are required to be paid in cash only.  There could not be any adjustment from the CENVAT credit Account.

[Naveed S]

Yes, and same for Payment of Penalty too..