Delay in return

[sunil mehta]

1) A Dealer stopped trading in 'excisable commodity'in June'04.Thereafter it did not file Qly. return as per Rule 9(8) of  Cenvat Credit Rule, 2004. They were under the impression that it need not file return after it stopped trading activities.(regn. certificate was not surrendered).The firm then filed Qly.return for six quarters in Sept.2007 before issue of notice. 2)The Asst.Comm.of C.Excise has imposed a penalty of Rs.5000/- per quarter (i.e Rs.30000/- for 6 qtrs.)under rule 27 of Central Excise Rule, 2002. 3)Asst.comm. says...'I find that the reasons for delay in filing is not tenable and therefore,their request to condone the delay for technical lapse and taking lenient view by way of dropping the show cause notice cannot be accepted' Pl.guide me.Any case laws for above matter? Note:The assessee here stopped excisable activites but continued with non-excisable activites since 2004 Thanking you,

AI Summary

Penalty Imposed for Delayed Filing Despite Ceased Trading; Dealer Challenges Under Rule 9(8) of Cenvat Credit Rule, 2004. A dealer ceased trading in excisable commodities in June 2004 and mistakenly believed they no longer needed to file quarterly returns, as required by Rule 9(8) of the Cenvat Credit Rule, 2004. Despite not surrendering their registration certificate, they filed returns for six quarters in September 2007 before receiving a notice. The Assistant Commissioner of Central Excise imposed a penalty of Rs. 30,000 for the delay, citing the reasons as untenable and rejecting leniency. The dealer seeks guidance and case law references to contest the penalty, while a respondent suggests seeking relief from an appropriate forum.