Invoice wrong issue, Central Excise

[SNEHAL SHAH]

R/sir, Due to system problem we have generate Invoice & despatch FG material without payment of duty ( System not calulate duty ).This problem heighlighted in audit.What imlication for this mistake .please guide . snehal shah

Posts / Replies

[sanjeev jadhav]

Dear Snehal,

Please pay duty, ed. cess and higher sec. ed. cess along with interest 13% on the unpaid duty amount and file the declaration under Sub-section 2 of Section 11A of the Central Excise Act 1944 to your Jurisdictional Excise office. Then no action will be intiated against you for the short duty payment. Please do all above before issue of show cause notice from the department.

[Mangesh Lokre]

the Only option is to pay the duty along with interest 13%PA before issuance of the SCN.

This will avoid the Penalty.

[Seetharaman K C]

I agree with my learned friends but what is also important is whether this issue was informed to the department in writing and whther the tax was remitted at the earliest. If this is not done then department can also claim suppression of facts