How to Revise a Revised Return filed within 90 days under Service Tax

[CASeetharaman KC]

It is a known fact that an assessee can revise a return within 90 days. The question is whether the assessee is allowed to further revise a 'Revised Return' filed within the time limit of 90 days provided the Re-revision of the revised return is within the time period of the stipulated 90 days. I have tried doing so through the system and it has been rejected saying that revised return has already been filed. Would it be appropriate to file a manual re-revised return in such case?Would seek your expert guidance

[Mahir S]

Sir,

Please find below an explanation on the said issue :-

How do I file Revised Return ?
You can revise your ST-3 return once within 90 days from the date of filing the original return.

Hence, the rejection by the system that revised return has already been filed is proper and correct. In your case, as one revised return has already been filed, hence now subsequent revised return cannot be filed.

[CASeetharaman KC]

Thanks for your reply , however there may be instances where although the return has been filed correctly there may be Cenvat credit balances to be reflected as a result of audit findings.In such cases the return may need to be revised again which is a genuine problem. My question is how to handle this?

[CASeetharaman KC]

Further to my reply to your answer the relevant rule does not state anywhere that the revised return can be revised only once:

Service Tax Rules, 1994

17B. Revision of Return.- An assessee may submit a revised return, in Form ST-3, in triplicate, to correct a mistake or omission, within a period of 2[ninety days] from the date of submission of the return under rule 7. Explanation.- Where an assessee submits a revised return, the 'relevant date' for the purpose of recovery of service tax, if any, under section 73 of the Act shall be the date of submission of such revised return. ---------------------------------- Notes : 1. Has been inserted, vide Notification No.1/2007-ST dated 1.3.2007 2. For the words "sixty days", the words "ninety days" has been substituted vide notification no. 4/2008 dated 1-3-2008

[MUKUND THAKKAR]

Sir,

view is given by Mr. Naveed is given is correct,

if you are doing interpretations that rule does not state anywhere that the revised return can be revised only once.

please note rules is not saying that you can revised your revised returns after submission.

Regards.

[Mahir S]

Yes, the views expressed above by Mukundji is correct.

Rule 7 B says - an assessee may submit A REVISED RETURN...

The above words are mentioned in singular form and words such as REVISED RETURNS are not used. Hence, it confirms that revised return can be filed only once.

You may also click the following links :-

https://www.aces.gov.in/Ret_FAQ - js p#122

In the said link, the following clarification is provided :-

How do I file Revised return?
You can revise your ST-3 return once within 90 days from the date of filing the original return, through RET > Fill ST3 > Revise ST-3. Please ensure that in the revised return at A1 you select No for 'Original Return' option and Yes for 'Revised Return' option.
 

[CASeetharaman KC]

Other Citation: 2014 (35) S.T.R. 566 (Tri. - Del.)

RADICO KHAITAN LTD. Versus COMMR. OF C. EX.and SERVICE TAX, DELHI-I

2014 (12) TMI 784 - CESTAT NEW DELHI

Revision of service tax return after 90 days to avail and utilize cenvat credit - refund claim filed for claiming service tax paid in cash - Held that:- Service tax liability was discharged by the appellants in the month of October, 2009 and S.T.-3 return was filed on 24-4-2009. At that particular point of time, their CENVAT account was nil. Subsequently, the entries made in the CENVAT account was checked by them and certain mistakes were detected, resulting in availability of CENVAT credit. They subsequently sought revision of the same on 21-12-2011, i.e., after a period of 2 years and 8 months which according to the lower authorities was not in accordance with law inasmuch as Rule 7B of the Service Tax Rules, 1994 allows any revision to correct a mistake or omission within a period of 90 days of the filing of such return. Though the correction of entries in the CENVAT account is not the subject matter of the present appeal, but the same are inter-connected and inter-related to the issue of refund. Appellants having paid the duty through cash, at the relevant time and having duly reflected the same in their S.T.-3 return, has to be treated as the correct payment of duty. Subsequently, correction of CENVAT account resulting in availability of CENVAT credit cannot be held to be a ground for refund of the cash deposit and acceptance of the tax through cash. Even the fact of correction of entries in CENVAT account does not stand accepted by the Revenue. I find no justification for refund of the cash deposit, which were, when made, were correct. No justifiable reason for grant of refund of service tax paid in cash. However, as the appellants have also paid the service tax again through CENVAT credit, they are entitled to the correction of entries, by correcting the second time reversal in their CENVAT account. - Decided against assessee. No. - ST/57344/2013-ST(SM)Order No. - Final Order No. A/50446/2014-SM(BR)Dated - January 31, 2014 Ms. Archana Wadhwa, Member (J)Shri Sanjeev Aggarwal, Advocate, for the Appellant.Ms. Suchitra Sharma, DR, for the Respondent.ORDERAfter hearing both the sides, I find that the appellants are engaged in providing various taxable services for which they are duly registered with the Revenue. They are also availing CENVAT credit of service tax paid on various input services. However, as per the S.T.-3 Return filed by them for the period October, 2008 to March, 2009, as the opening balance was nil, they discharged the service tax liability through cash. The returns were accordingly filed and finalised by the Department.

2. Subsequently, the appellants found that there was a mistake in maintenance of CENVAT credit account and they were actually having opening credit in the said account. Accordingly, they debited the service tax, once again, for the said period through their CENVAT account and consequently, claimed the refund of ₹ 12,39,236/- paid in cash vide their refund application dated 9-7-2009. Both the authorities below rejected the refund claim. Hence, the present appeal.

3. I find that the service tax liability was discharged by the appellants in the month of October, 2009 and S.T.-3 return was filed on 24-4-2009. At that particular point of time, their CENVAT account was nil. Subsequently, the entries made in the CENVAT account was checked by them and certain mistakes were detected, resulting in availability of CENVAT credit. They subsequently sought revision of the same on 21-12-2011, i.e., after a period of 2 years and 8 months which according to the lower authorities was not in accordance with law inasmuch as Rule 7B of the Service Tax Rules, 1994 allows any revision to correct a mistake or omission within a period of 90 days of the filing of such return. Though the correction of entries in the CENVAT account is not the subject matter of the present appeal, but the same are inter­connected and inter-related to the issue of refund.

4. The appellants having paid the duty through cash, at the relevant time and having duly reflected the same in their S.T.-3 return, has to be treated as the correct payment of duty. Subsequently, correction of CENVAT account resulting in availability of CENVAT credit cannot be held to be a ground for refund of the cash deposit and acceptance of the tax through cash. Even the fact of correction of entries in CENVAT account does not stand accepted by the Revenue. I find no justification for refund of the cash deposit, which were, when made, were correct.

5. In view of the above, I find no justifiable reason for grant of refund of service tax paid in cash. However, as the appellants have also paid the service tax again through CENVAT credit, they are entitled to the correction of entries, by correcting the second time reversal in their CENVAT account.

6. The appeal is disposed of in the above manner.(Pronounced on 31-1-2014)

AI Summary

Debate on Revising Service Tax Return: Rules Allow Only One Revision Within 90 Days, Citing Service Tax Rules, 1994. An individual inquires about the possibility of revising a revised service tax return within the 90-day period, as the system rejected their attempt to do so. A respondent clarifies that the rules permit only one revision within 90 days from the original filing date. The original poster argues that the rules do not explicitly limit revisions to once, citing Service Tax Rules, 1994. Another participant supports the initial response, emphasizing the singular term 'a revised return' in the rules. The discussion references a case where a refund claim was denied due to revisions attempted beyond the stipulated period.