DELAY IN SUBMISSION OF E.R.1 RETURNS.

[ASHOK AMIN]

Dear Experts,

Can anyone give me a concrete reply to this querry;

We are a manufacturing unit and with more than 4 crore turnover. We file monthly returns by 10th of the following month. Due to financial crisis we are unable to pay duty of an amount ₹ 6 lacs in time. There is a strike of banks for three days (friday, saturday & sunday) due to which our bank are unable to release the amount. Now, in such a situation if we pay the balance duty on monday i.e. 11th with interest and thereafter we file the returns on the same day, will there be any penalty levied on us. If yes, how much penalty we will have to pay ? We would like to have the complete details of penalty in case of late filing of returns. Please give us the reply urgently.

AI Summary

Manufacturing unit faces penalties under Rule 27 for late duty payment and returns; bank strike cited as cause. A manufacturing unit with over 4 crore turnover faced a delay in paying a duty of 6 lakhs due to a bank strike, leading to late submission of ER.1 returns. The discussion revolves around potential penalties for late duty payment and return filing. Experts highlighted two offences: late duty deposit and late return filing, each attracting a maximum penalty of 5,000 under Rule 27 of the Central Excise Rules, 2002. Suggestions included paying duty with interest, filing returns promptly, and possibly seeking penalty waivers due to extenuating circumstances. The maximum penalty could be 10,000, but leniency is possible.