penality for nil return, Central Excise

[JENI SHA]

is there any penalitty/ interest for delay on nil return file?

Posts / Replies

[Umanand Vijay]

Wether the matter for central; excise or service tax 

[Naveed S]

If a person gets himself registered with the service tax department, he has to follow all the procedures and submit all the relevant documents which are necessary, even if he is not providing any services during the concerned half year.

Therefore, even if he is not  providing any service or not liable to pay any service during the corresponding Half Year for which return is due to be submitted, he is required to file return in Form ST-3 or ST-3A as the case may be, as a NIL return.

However, in some instances, the tribunal has taken liberal stand for non filing or late filing of  NIL return and rejected the penalty proceedings for the same but it is highly advisable to submit the returns within time without taking any chance of litigation.

Under RULE 7C,  Power to WAIVE OR REDUCE the penalty has been vested with the Central Excise Officer in case of NIL service tax liability.

[phani raju konidena]

Central Excise: Delay in filing of ER-1 return, would attract penalty under Rule 27 of  Central Excise Rule, 2002] - Compact Tools vs Commissioner of Central Excise, Indore (2013 (9) TMI 518 - CESTAT NEW DELHI ) =2013 (290) ELT 0412 Tri.-Del

Service Tax: Please refer Article by Mr.Bimal Jain on 12.08.2013 (TMI) -

No Need to file Service Tax return (ST-3) when no service is rendered during the relevant period and even not required to opt for VCES

[Rama Krishana]

See Rule 27 of Central Excise Rules, 2002 wherein general penalty has been prescribed upto Rs. 5000/- .