Differential Excise Duty Obligation to Pay Interest

Abstract

A manufacturer or service provider has to pay excise duty and service tax as per the normal procedure on the basis of 'assessable value'. The obligation of the assessee, if the duties are not paid, is analysed here. It is not necessary to wait till the inputs are actually utilised in the manufacture or production. Similarly, it is not necessary that the payment should have been made to the supplier of goods.