Wednesday, 5 November 2014

No late fee for delay in filing 'Nil' Returns - Board Circular NO.97/8/2007 - ST dtd.23-08-2007 relied upon.

Suchak Marketing Pvt. Ltd. vs. Commissioner of Service Tax, Kolkata.  (Tri.-Kolkata) [2013 (30) S.T.R. 593]

Facts:
The Appellant provided commercial or industrial construction service and got registered under the said category. They filed 'NIL' Returns for the period September 2005 - March
2008 on 18-11-2008 Consequently, penalty under Rule 7C of the Service Tax Rules was confirmed and the Appellant was directed to pay Rs. 12,000/- for each Return and further imposed penalty of RS. 2,000/- u/s. 77 of the Finance Act, 1994. The Commissioner (Appeals) dropped the penalty u/s. 77 but confirmed the penalty of Rs. 12,000/- against the Appellant under Rule 7C of the Rules. The Revenue contended that since the penalty u/s. 77 was already dropped, there was no reason to waive the late fees under the said Rule 7C

Held:
Relying on Board Circular No. 97/8/2007 ST dated 23/08/2007 clarifying that, in absence of any service rendered, there is no requirement to file ST-3 Returns. Further invoking proviso to the said Rule 7C, the late fees for the NIL Returns were waived.

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