TaxTMI 
TaxTMI 
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.
SUPREME COURT JUGEMENT FOR WAIVER OF RETURN PENALTY.
10 Nov 2016 
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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. (AI Summary)
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. (AI Summary)