Late filling of ee 1 nil return

[Vaibhav Baharia]

Sir

I have not filed er1 since may 2017 to may 2018.since there was no production. And i was not aware of nil return.those nil return were filed in june 2018.now the department has given notice of penalty of rs. 184000.pl. suggest

[Rajagopalan Ranganathan]

Sir,

According to Rule 12 (5) of Central Excise rules, 2017 "Where any return referred to in this rule is submitted by the assessee after due date as specified for every return, 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.

Therefore the maximum penalty shall be ₹ 20,000/- only. It cannot be ₹ 1,84,000/[-.

[KASTURI SETHI]

First of all there is no relaxation in Central Excise on the ground of NIL return or nil production. There is relaxation in Service Tax only. ER-1 return for May, 17 was to be filed by 10.6.17 and which has been filed in June, 18. This one return has been delayed by one year. Now calculate penalty for each return up to May, 18. Emphasis is supplied on each return. Penalty of ₹ 20,000/- must not exceed for each return.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sethi.

AI Summary

Late filing penalty capped under Central Excise Rules; each delayed return attracts daily levy up to a fixed maximum. Late filing of ER 1 nil returns under Central Excise rules draws a daily penalty subject to a statutory maximum for each delayed return, applied on a per return basis. Nil production does not exempt assessees from timely filing; each delayed ER 1 attracts the same late filing levy and the aggregate liability equals the sum of the per return caps for the delayed periods.