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TMI Blogwaiver of penalty for non filing of NIL return of ER3X X X X Extracts X X X X X X X X Extracts X X X X ..... One of my clients is a manufacturer of curry powder. He has Central Excise Registration eventhough he got SSI Regn. He failed to file ER3 Return for 2 quarters. Department issued notice for paying penilty of ₹ 20000/- for each quarter. Is waiver of that penalty available for my client...? Please clarify.. Regards, CA.Beena - Reply By Mahir S - The Reply = In Excise, there was no sepa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate penal clause for charging penalty for late filing of Excise Return. Under general clause Penalty for late filling of return was levied. However, now under Rule 12 (6) of Central Excise Rules, 2002 , now Penalty clause is inserted for late filing of Return. Penalty of ₹ 100/- per day is payable for after due date till filing of return , subject to Maximum of ₹ 20000/-. Yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u have not mentioned the Quarter for which such returns were not filed. However, you can count the days of delay from the due date of filing of such returns and accordingly pay the penalty amount. - Reply By KASTURI SETHI - The Reply = Yes. There is no option except to deposit the due amount of penalty. The department is very strict now. Special provision has been inserted for imposition of pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty.Prior to issuance of Notification No.8/15-CE(NT) dated 1.3.15, penalty for late filing of return was being imposed upon under Rule 27 of CE Rules, 2002 and there under penalty was being waived on genuine grounds by the Adjudicating Authority but now no chance for waiver of penalty for late filing of return. In Service Tax also, Section 80 has also been omitted. Time will come even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ACES System will not upload the return, if penalty is not deposited. So assessee has to be careful. - Reply By YAGAY AND SUN - The Reply = Dear Beena, M/s Suchak Marketing Pvt Ltd Vs. Comm. of Service Tax, Kolkata [2013 (6) TMI 641] may come to your client's rescue as Nil return was not filed. Further, you may request to the concerned authority for a lenient view since your c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lient is a SSI Unit. Regards YAGAY and SUN (Management, Business and Indirect Tax Consultants) - Reply By Ganeshan Kalyani - The Reply = If the delay is genuine then support of case law can be sought for. In one practical situation I have observed that department has granted the delay but upon the main reason that the mistake was inadvertent. Thanks. - Reply By Mahir S - Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Reply = Sir, with due respect, it appears that the case law referred above is related to period before the insertion of . C.Ex. Notification No. 08/15 N.T. dated 01.03.2015, hence may not be applicable in the present case. However, you can surely put the above referred points in your defence submission. - Reply By KASTURI SETHI - The Reply = I fully agree with Sh.Mahir S. Sir. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also agree with M/s.YAGAY AND SUN and Sh.Ganeshan Kalyani, Sirs to the extent that plea for genuine grounds can be taken for exoneration of penalty before the Adjudicating Authority but chances are bleak. There are a few judgments also but these will not be helpful to the assessee in the changed scenario of Central Excise law, especially, after insertion of Rule 12 (6) . I think at present the Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicating Authority is bound by law and has no discretion in this aspect. There is no room for sympathy in law though grounds may be genuine. Non-filing of return is a very serious offence though return may be NIL.The Govt. does not know what is being concealed by the assessee by not filing return. - Reply By Mahir S - The Reply = Well answered Kasturi ji... - waiver of penalty for non filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of NIL return of ER3 - Query Started By: - BEENA MANADATH Dated:- 8-2-2016 Central Excise - Got 7 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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