INTEREST PAYMENT ON SUPPLEMENTARY INVOICE RAISED, Central Excise

[SANDESH SHINDE]

Dear Sir,

Is interest payable on supplementary invoice raised on price revisions with retrospective effect, please clarify with any references regarding this,pls explain, thanks and regards.

Posts / Replies

[Naveed S]

Yes, interest is payable with retrospective effect on the supplementary invoices raised due to price revisions. Interest would be payable at 18 percent per annum from the date of issuing the initial/original invoice.

For ready reference on the said issue, refer the Supreme Court of India judgement in the matter of Commissioner of Central Excise, Pune Versus M/s SKF India Ltd.  2009 (7) TMI 6 - SUPREME COURT.

[Pradeep Khatri]

Dear Sandesh,

It is settled legal position that interest is payable on the issuance of Supplementary Invoices.

Regards,

Team YAGAY and SUN

(Management and Indirect Tax Consultants)