Sunday, September 28, 2008

What is recovery of excise duty

Dear friends
Recovery of central excise duty means recovered the amount of unpaid by assessee . It is the power of central excise officer to get his unpaid duty from assessee under section 11. Central excise act gives the power of recovery to central excise officer . Recovery is a complexive work and it is a first priority to get unpaid amount .
Rules or provisions of recovery under section 11
1st Rule
There are the following way of recovery
(i) Central excise officer sold the capture goods and recovered his duty
(ii) Transfer of all received certificate to the collector (in this certificate assessee have given the acceptance to pay excise duty.)
(iii) Adjust the unpaid excise duty with amount payable to assessee.
Second Rule u/s 11 A
Under this rule it is duty of the central excise officer to get the refund which is given by him by mistake.This recovery of refund can be done with in the one year the govt. has no right to get this amount after oner year .Before receiving this recovery central excise officer gives the notice that we or our department has taken mistak and send you refund .Please refund this amount.
3rd Rule u/s 11AB
Under this rule if assessee will not pay his unpaid amount within three months . He will liability to pay 9% to 24 % interest on the unpaid amount upto the delay period .
4th Rule 11 AC
Under this rule if assessee committed fraud or give his misstatement and after this he get refund from govt. Then when central excise officer find this fraud . He will recovered this amount with penalty.
Penalty = unpaid duty


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