Limitation period for demand of Late Fee

[Shyam Naik]

Dear All,Whether the limitation period for demand of service tax shall apply to demand of fee for late filing of Service Tax return?

AI Summary

Limitation Period for Service Tax Demands May Apply to Late Filing Fees Under Rule 7C and Section 70 A query was raised regarding whether the limitation period for service tax demands applies to late filing fees for service tax returns. The response clarified that the late fee under Rule 7C of the Service Tax Rules, in conjunction with Section 70 of the Finance Act, 1994, is mandatory unless no service tax is payable. The department can recover this fee using Section 87 powers, but the limitation provisions should be considered. If a show cause notice (SCN) is issued, it should be within a reasonable period, as determined by the Supreme Court, potentially aligning with the limitation period under Section 73.