EXCISE AND SERVICE TAX RETURN

[SUMEDH AYARE]

WE ARE TAKING CREDIT ON INPUT SERVICES (SERVICE TAX)  AGINST THE EXCISE DUTY PAYABLE.

AT OUR END THERE IS NO LIABILITY OF SERVICE TAX PAYMENT.

WE ARE PAYING ONLY EXCISE DUTY  &  FILING EXCISE RETURN I.E.  ER-1  (WHEREIN WE SHOW THE CREDIT OF SERVICE TAX) 

WE ARE NOT FILING ANY SERVICE TAX RETURN. (WE ARE REGISTERED WITH ST  AS  GTA)

WHETHER WE NEED TO FILE SERVICE TAX RETURN ?????????? 

AI Summary

Obligation to file service tax return requires registered assessees to file ST 3 even if nil, failing invites penalties.
Registered assessees must file periodic service tax returns (ST 3) even where no service tax is payable; failure to file exposes the assessee to statutory penalties, though the Central Excise Officer may waive or reduce penalties under the proviso to Rule 7C in cases of nil liability.