Central Excise - Non filing of NIL Excise return

[Vivek Mohta]

Dear Sir/Madam,

I would want to know whether the penalty can be waived of in case a NIL excise return has not been submitted, as there is no revenue loss in this case.

In case of Service Tax there are case laws supporting the same that NO ST Returns require to be filed in case of NIL Liability.

Is there any similar case law for excise as well?! If yes..please let me know.

Regards.

[KASTURI SETHI]

In Central Excise, there is no provision for waiving penalty for NIL return. No officer has power to waive penalty, if transaction/revenue is nil.

[YAGAY andSUN]

No worry non filing of nil return does not attract any penalty in erstwhile Excise/Service Tax Laws. It is a settle legal position. Please check Issue Id: - 109841.

M/s Suchak Marketing Pvt Ltd Vs. Comm. of Service Tax, Kolkata [2013 (6) TMI 641] may come to your rescue as Nil return was not filed.

 

[DR.MARIAPPAN GOVINDARAJAN]

In case of NIL liability return is liable to be filed. The third proviso to Rule 7C provides that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty. If return is not filed for NIL liability the Central Excise Officer may reduce or waive the penalty. In the case law referred by the learned friend, the Tribunal directed to revoke the proviso of Rule 7C and considered it as a fit case to drop the penalty.

[KASTURI SETHI]

Dear Sir,

Agree with you regarding Service Tax.

In Central Excise, there is no provision for waiving off penalty in case return is NIL.

[YAGAY andSUN]

Only through the litigations or court verdicts, written or un-written law develops.

AI Summary

Waiver of penalty for non filing of nil excise returns hinges on statutory proviso and contested administrative practice. The document addresses whether penalty can be waived for non filing of a NIL Central Excise return. It presents two conflicting positions: one asserting that NIL returns must be filed and officers have no power to waive penalty; the other invoking a statutory proviso permitting the Central Excise officer to reduce or waive penalty if satisfied there is sufficient reason for non filing, with tribunal decisions in related Service Tax matters cited in support.