SUPREME COURT JUGEMENT FOR WAIVER OF RETURN PENALTY.

[SANJEEV JADHAV]

Dear Sir, Recently our excise department has passed order regarding imposition of penalty ₹ 60000/- for delayed submission of three service tax returns. Has their any judgement / decesion of Superment Court or High Court regarding waiver / reduce in Rule 7 penalty.

[Ganeshan Kalyani]

If return of Service Tax is not filed within prescribed period, penalty is leviable u/s 77(2) which can be up to ₹ 10000/-. If late fee is paid, penalty will not be imposed.

[DR.MARIAPPAN GOVINDARAJAN]

What are the due dates for filing ST returns and when you have filed the same? I

[Suryanarayana Sathineni]

Dear Friend,

I am afraid that the maxim late fee is ₹ 20,000/- for late filing of ST Return.in terms of Section 70(1) of FA,1994

with effect from 1.4.2011.

Best Regards

Suryanarayana

[SANJEEV JADHAV]

Dear Sir, Thanks all of you for reply and suggestion.

Due dates for ST-3 returns are given below:-

Period Due Date Date of Submission

Apr-13 to Sept-13 25.10.2013 26.10.2015

Oct-13 to Mar-14 25.04.2014 01.02.2016

Apr-14 to Sept-14 14.11.2014 07.02.2016.

Order is decided and imposed late fee ₹ 60000/-.

As ours is newly set up and we wish to appeal the OIO.

[DR.MARIAPPAN GOVINDARAJAN]

For each case maximum late fee ₹ 20,000/- is levied. Delay of return is for three occasions. Therefore the late fee is payable is ₹ 60,000/-. No appeal can be filed since it is a correct one.

[SANJEEV JADHAV]

Dear Sir, Thanks you for your suggestion. But ours is small SSI unit and expect to reduce penalty. In brief ours is new unit started during 2013. Initially during primary state no person is their for looking these transactions. And also total Service tax paid for all thee periods is amounting to ₹ 87000/- which also relates to reverse charge mechenism system relating to GTA & Manpower. Entire service tax paid along with interest immediately after registration without any follow up or letter from department. Late fee ₹ 60000/- to the total payment of ST ₹ 87000/- is not sustansiable / proper. Hence we are filling appeal to reduce it.

[DR.MARIAPPAN GOVINDARAJAN]

If you file appeal you will lose the case and also the waste of time.

[Ganeshan Kalyani]

Also check the litigation cost involved.

AI Summary

Late fee liability for delayed service tax returns may not be waivable; appeals face limited prospects.
The statutory framework differentiates a penalty for non filing under section 77(2) and a per occasion late fee under the finance provision commonly referenced from section 70(1). Payment of the late fee generally precludes imposition of the non filing penalty. Multiple delayed filings result in multiple late fee liabilities, so three late ST 3 returns drew aggregated late fees. Practitioner comments in the file conclude that aggregation conforms with the statutory cap per occasion and that appellate prospects for waiver are limited.