Whether late fees imposed by the Service Tax on non-filing or ST-3 Returns having no tax liability.

[samiuddin ansari]

Sir,

With due respect, I may kindly be informed as to whether late fees imposed by the Service Tax Department on being the filing of delayed ST-3 Returns in which there is no tax liability or nil tax payable, but have gross taxable value as shown in ST-3 Returns. As my friends firm are receiving notices from the Service Tax Department for payment of late fees for delayed returns.

Any reference of Circular or clarification or also case laws in this regard may be conveyed, please

Thanks with regards,

S.N.Ansari.

AI Summary

Waiver of Penalty available for delayed nil-service-tax returns where officer exercises discretion under service tax rules.
Late fees for delayed ST-3 returns with nil tax liability are subject to discretionary waiver by the assessing officer under Rule 7C(1) proviso; adjudication is fact-specific, guided by case law and departmental practice, and administrative monitoring via ACES leads to issuance of notices and compliance reporting rather than automatic exemption.