Rate of interest for payment of confirmed demand., Central Excise

[vinay wakde]

We have received show cause notice on Input services on which we have taken CENVAT credit during Feb, 2014 and utilized for payment of Excise duty. Since, we have find no merits in our case and credit amount is negligible after demand confirmed by the Commissioner (Appeals), we shall be reversing the duty with Interest and Penalty. Kindly let us know Interest rate for relevant period.

Regards,

VINAY

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

As per Notification No. 15/2016-C.E. (NT) dated 1.3.2016 the rate of interest is 15% per annum. This Notification has come into effect from 1.4.2016. Therefore if you pay amount demanded on or after 1.4.2016 the rate of interest will be 15%. The rate of interest applicable will be the date of payment of the demand. The previous rate was 18%.

[Ganeshan Kalyani]

Sir, I agree with the views submitted by Sri Rajagopalan Sir. Additionally avail benefit of lower payment of penalty by paying within one month of the receipt of SCN. Thanks.

[vinay wakde]

Thanks for valuable guidance.

Regards,

VINAY

[KASTURI SETHI]

I agree with both experts to the core but there is a practice in the department to recover interest for the past period as per the rate of interest remained in force in terms of relevant notifications. It is a fact.