EXCISE

INTEREST ON ERRONEOUSLY AVAILED CENVAT CREDITS

There have been two recent developments in regard to interest liability in cases of erroneously availed CENVAT credits on inputs. The question of law is whether in terms of the CENVAT Credit Rules 2004 (the Rules), the liability to interest is triggered upon the erroneous or incorrect availment of input tax credits or whether such liability is only applicable where such erroneously availed CENVAT credits are utilis [...]

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FINANCE MINISTRY URGED TO SCRAP SPECIAL EXCISE DUTY ON BIG CARS

The Ministry of Heavy Industries has urged the Finance Ministry to waive the Special Excise Duty (SED) of Rs 15,000 and Rs 20,000 on 1500cc and 2000cc cars respectively, said Mr Ambuj Sharma, Joint Secretary, Ministry of Heavy Industries. The SED was levied by the Finance Ministry on fuel guzzling cars to contain carbon emissions. Inaugurating the National Summit on Public Buying organised by Assocham, Mr Sharma sa [...]

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Benefit of reduced penalty under provisos to Section 11AC – whether also available at appeal stage

Circular No. 898/18/09-CX., dated 15-9-2009 A case has been brought to the notice of the Board wherein a Commissioner (Appeals) had allowed the benefit of proviso to Section 11AC of the Central Excise Act, 1944 to pay penalty at the reduced rate of 25% within 30 days of the communication of the Order in Appeal. Commissioner (Appeals) has read Section 11AC and Section 35 F together to arrive at the aforesaid de [...]

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