Nile Return not file

[Guest]

Hi All,

I have just taken a Pvt Ltd name from some1, excise number in this company was taken in 2014 but due to no business activity till now the earlier onwer had not file even nil return of central excise..

my question is if I start using this number for my trading business purpose, will there be any chance of penalty for not filing nil return for last 3 years??? if yes what will be the amount ??

[KASTURI SETHI]

There is no relaxation regarding imposition of penalty on the ground that transaction is nil. Penalty of ₹ 100/- per day is imposable under Rule 12(6) of CE Rules, 2002. Maximum ₹ 20000/- Notification No.8/15-CE(NT) dated 1.3.15. No officer has power to relax.

[Guest]

Hi, Kasturi Sethi.

Thank you for the prompt reply...

have one query so the maximum fee is 20k Rs for each year ?? or if for all 3 years of not filing nil return ??

[Rajagopalan Ranganathan]

Sir,

Rule 12 (6) of Central Excise Rules, 2002 stipulates that " where any return referred to in this rule is submitted by the assessee after due date as specified for every return or statements, the assessee shall pay to the credit of the Central Government, an amount calculated at the rate of one hundred rupees per day subject to a maximum of twenty thousand rupees for the period of delay in submission of each such return or statement.

In view of the above provision you have pay the late fee for each return filed after due date. If you take over the business with ensuing assets and liability of the previous owner then you are liable to pay late fee for delayed filing of the return. Otherwise you are not liable. This is my opinion.

[Ganeshan Kalyani]

If the liability of the company is also taken over by you then the late fee for late filing of return is payable by you in the manner as explained by learned experts Sri Kasturi Sir and Sri Rajagopalan Sir.

[Guest]

Ok thanks all for the help , I last penalty amount will be 20k for 1 yr or for 3 years ?

[Ganeshan Kalyani]

Pls refer carefully the below para

at the rate of one hundred rupees per day subject to a maximum of twenty thousand rupees for the period of delay in submission of each such return or statement.

[Guest]

hi all, if there was no activity done from the date of taking the number till date, so still the penalty remains the same ?

[KASTURI SETHI]

Yes. There is relaxation in Service Tax but not in Central Excise.

[Guest]

Hi all, thanks for the clarity, one last question for nil return, return will be once a year or quarterly ??

[YAGAY andSUN]

Such penalty amount must be deducted by you from the amount payable to the company you are taking over.

AI Summary

Late fee for central excise returns applies at a daily rate with a per return cap and no nil-transaction relief. Failure to file central excise returns, including nil returns, attracts a daily late fee subject to a statutory maximum for each delayed return. The cap applies per return; no relaxation exists for nil transactions. Liability for late fees transfers to a successor who assumes the business along with its assets and liabilities. The filing periodicity is not specified in the discussion.