TMI BlogPENALTY IMPOSED UNDER SECTION 27 FOR NON FILING OF ER-4,5,& 7 FOR F.Y. 2013-14X X X X Extracts X X X X X X X X Extracts X X X X ..... Respected Sir, I am in receipt of Order for Show Cause issued for Non Filing of ER-4 , ER-5 ER-7 for F.Y. 2013-14 under Rule 27 of Central Excise Rules, 2002 by the Jurisdiction Officer. We have filed the Respective ER-1 ER-6 of all the Months for F.Y. 2013-14 but as we were not aware with respect to the applicability of ER-4 , ER-5 ER-7 to us we had not filed the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Also the same was observed during Excise Audit conducted at our unit. Kindly guide us in this regard. - Reply By KASTURI SETHI - The Reply = Sh.ASHISH SHAH JI, If you have not filed these annual returns so far, file immediately. In terms of Rule 12 (6) of CE Rules, 2002 , you will have to deposit late fee @ ₹ 100/- per day subject to maximum of Rupees twenty thousand. It is per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return. In this case, the A.C. has no discretionary powers to reduce or waive off late fee. However, under Rule 27 , A.C. can waive or reduce penalty, if satisfied with the genuine reasons for delay. There is no escape route for waiver of late fee. - Reply By Mahir S - The Reply = Sir, (i) The point taken by the Audit party is perfect and truly correct. Also, penalty has been imposed unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r rule 27 as the issue pertains to the period prior to March 2015, after which rule 12 (6) has been made applicable. (ii) Under rule 27 , the penalty is negligible, so better to pay the penalty amount and submit the challan to the Division/Range office and to close the matter. (iii) Else you may submit your defence reply asking to take leniant view therby pleading for reduction of the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty amount. I would personally prefer point (ii) above. - Reply By KASTURI SETHI - The Reply = I endorse the views of Sh.Mahir S, Sir. Better option is to deposit late fee as well as penalty and thus be tension free. - Reply By Mahir S - The Reply = - Reply By surya narayana - The Reply = Dear Friend, Though your stated reason is appears genuine, you cannot escape from the penalty. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a general rule that Law cannot be ignored. As already stated by our friends, if your non-filing of the return are genuine and with the reasons the officer is satisfied, then your penalty may be lesser and otherwise, you have no option but to pay the maximum penalty as prescribed. Best Regards Suryanarayana - Reply By KASTURI SETHI - The Reply = Sh.Surya Narayana Ji, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thanks a lot,Sir. You have cleared the air. About one month ago, there was lengthy discussion about late fee and penalty. During that discussion, I opined that both were separately imposable and I also cited CESTAT judgement in support of my argument but there remained disagreement. We cannot intermingle both terms.Penalty is always for contravention of rule or section. Late fee cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... replace penalty and vice versa. - PENALTY IMPOSED UNDER SECTION 27 FOR NON FILING OF ER-4,5,& 7 FOR F.Y. 2013-14 - Query Started By: - ASHISH SHAH Dated:- 10-3-2016 Central Excise - Got 6 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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