16 August 2013
Dear Sir My client has paid his service tax dues with interest but hasnt filed his returns for the last 2 yrs. Can he claim relief against penalty for non filing through vces ??
16 August 2013
if there is a liability which is still unpaid corresponding to the same period then ? does he still have to pay penalty of late filing coz section 98(1) states that immunity shall be available for penalty,intt or any other proceeding under the chapter. ?
17 August 2013
Though you are not eligible for VCES but you should file belated returns. The penalty is Rs. 500/- to maximum of Rs. 2000.00 per return, the excise officer has the power to waive the penalty in view of the following proviso to rule 7C
Provided also that where the gross amount of service tax payable is nil, the Central Excise officer officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty
You should therefore file return with waiver request.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
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