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.

[Hasmukh Patel]

They are going to reduce the penalty. Actually penalty impose under rule 27 is only for Daley of duty payment not for late submission of return. Rule 27 is not applicable for late submission return, so CBEC amend this rule in last budget & impose the penalty 100 / day & maximum up to 20000/- for late submission of duty. It's effective form March-14.

In above case they must try for drop the penalty for late filling of returns which was filed before march-14.

what will be the fate for non submission of return

AI Summary

Late deposit of excise duty and delayed returns attract penalties and late fees; payment with interest and mitigation may reduce liability.
Late deposit of excise duty contravenes Rule 8(1) and can attract general penalty under Rule 27 plus interest; delayed ER 1 filing triggers a statutory late fee introduced by recent amendment, which operates alongside interest and does not necessarily preclude penalty for contraventions. Payment of duty with interest, prompt filing and intimation to authorities are mitigating steps; Board circulars, case law and adjudicatory discretion shape imposition, reduction or waiver of penalties.