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2022 (9) TMI 123 - AT - Central ExciseImposition of late fee for filing Central Excise return - Many returns are Nil return - delay for filing returns has been considered for a period from December 2014 to June 2017 - Rule 12(6) of Central Excise Rules, 2002 - HELD THAT:- As apparent from the table given in para 5.2 of the impugned show cause notice, it is observed that out of alleged 31 delayed returns, 18 returns therein are ‘NIL’ returns i.e. for the respective period of said returns i.e. the appellant was not liable to pay duty for the respective period of returns. Hence, appellant cannot be called as “assessee” for the said particular period. Resultantly, Rule 12 (6) (the amended one) will actually not be applicable upon the appellant for the period during which ‘NIL’ returns were filed. With regard to the remaining 13 returns, from the aforesaid table of show cause notice that returns though have regularly been filed but with delay, it is clear that the factum of said delay was in the notice of department since December’ 2014. Raising this issue in ACS scrutiny of the year 2019 cannot give the benefit to the department for invoking the extended period of limitation. - Otherwise also extended period can be invoked only in the case when there is willful mis-declaration or willful suppression. Further, perusal of Rule 12 (6) of Central Excise Rules shows that the late fee cannot be charged over and above Rs. 20,000/- for a period of delay in submission of each return. Seen from that angle, the demand of Rs. 5,42,700/- as late fee is held to be on excessive side - there is no restriction in Rule 12 (6) as has been mentioned by Commissioner (Appeals) in its findings at para 8 of order under challenge. All the entire period of demand is held to be beyond the normal period for which the demand could have been raised - Appeal allowed - decided in favor of appellant.
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