non filing of service tax return

[muthiah thangaraju]

WHETHER  IS IT MANDATORY TO FILE NIL  RETURN?

AI Summary

No Service Rendered, No Need for Nil Service Tax Return Filing; Tribunal Waives Late Fees under Rule 7C. A query was raised about the necessity of filing a nil service tax return. In response, a reference was made to a legal case where it was determined that if no service is rendered, there is no requirement to file ST-3 returns, according to a Board's Circular. The case involved a company that filed six nil returns late and faced penalties. The Commissioner of Appeals initially confirmed a penalty, but the Tribunal later waived the late fees, citing the discretion allowed under Rule 7C of the Service Tax Rules and supporting precedents. The appeal was ultimately allowed.