| Date: |
02-05-1996
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| Notification No: |
Central Excise Circular No 208/1996
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding payment of Central Excise dues in instalments - Interest on delayed payment of dues
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Regarding payment of Central Excise dues in instalments - Interest on
delayed payment of dues
Circular
No. 208
dated 2nd May 1996
I
am directed to say that with the introduction of the Section 11AA in the year
1995-96 in the Central Excise and Salt Act, 1944, and with the issuance of
Notification No. 21/95- Central Excise (Non - Tariff) (F.No. 268/29/95-CX.8)
dated 29.5.1995, a doubt has arisen about the rate of interest to be
charged on delayed payments of Central Excise dues. After consideration of the
matter, the Board has decided that the rate of interest on delayed payments of
central excise dues would be 20% per annum as notified in Notification No.
21/95-CE (NT) dated 29.5.95, even in cases where instalment facility is allowed.
In the old cases also where instalment facility was granted in accordance with
instructions. F.No. 289/10/91-CX.9 dated 18.3.1991, the rate of interest would
be the statutory rate i.e. 20% per annum from the date the new Section 11AA came
into existence.
2.
It is clarified that such interest would be payable only on the actual
amount in balance from time and not on the original amount payable.
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