PENALTY IMPOSED UNDER SECTION 27 FOR NON FILING OF ER-4,5,& 7 FOR F.Y. 2013-14

[ASHISH SHAH]

Respected Sir,

I am in receipt of Order for Show Cause issued for Non Filing of ER-4, ER-5 & ER-7 for F.Y. 2013-14 under Rule 27 of Central Excise Rules, 2002 by the Jurisdiction Officer.

We have filed the Respective ER-1 & ER-6 of all the Months for F.Y. 2013-14 but as we were not aware with respect to the applicability of ER-4,ER-5 & ER-7 to us we had not filed the same. Also the same was observed during Excise Audit conducted at our unit.

Kindly guide us in this regard.

AI Summary

Penalty under Rule 27 can be reduced for genuine reasons, but late fee remains mandatory and non-waivable.
Penalty for non-filing of ER-4, ER-5 and ER-7 was imposed under Rule 27 for the relevant year; outstanding returns should be filed immediately. Late fee prescribed under Rule 12(6) (where applicable) is mandatory per return and not waivable by the assessing officer, whereas Rule 27 permits reduction or waiver of penalty if genuine reasons for delay are accepted. Practical options are to deposit the late fee and penalty to close the matter or submit a defence pleading leniency; late fee and penalty are legally distinct.