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Penalty for excise return file after due date

Lalit Sangani (M.Com. Asst. Manager Account) (731 Points)

04 May 2012

Dear Expert,

Please let me know what is the penalty for Excise return file after due date ?

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10 Replies

HS Negi (Senior Executive- F&A) (590 Points)
Replied 04 May 2012

Dear Sir,

A general Penalty may be extended to five thousand rupees can be imposed.

Regards

HS Negi

sharad sangle (excise) (23 Points)
Replied 08 May 2012

Negi sir,

please can you provide in which Notification mention the Excise return delay charges of Rs-5000/-

Regards

Sharad

HS Negi (Senior Executive- F&A) (590 Points)
Replied 08 May 2012

Dear Sharad Please refer to Rule 15A of CCR, 2004. Regards HS Negi

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Lalit Sangani (M.Com. Asst. Manager Account) (731 Points)
Replied 11 May 2012

Dear Negi ,

Thanx for your reply, Can you please provide me details of Rs. 5000/- penalty for which period duration, is it for 1 month or 1year or above.

please provide details.

Lalit Sangani (M.Com. Asst. Manager Account) (731 Points)
Replied 30 October 2012

Rule 15(1) of CCR, 2004:

Rule 15(1) says that if “any person” takes Cenvat Credit on ‘inputs and capital goods' wrongly or in contravention of the provisions of the CCR, 2004, then all such goods are liable for confiscation and such person is liable to a penalty not exceeding the duty on the excisable goods in respect of which any contravention has been committed, or two thousand rupees, whichever is greater.

When the words used are “any person”, it can be construed to mean a manufacturer and even an output service provider. Secondly, the rule covers only a situation where a credit is “TAKEN” but not “UTILIZED”.

So, if a manufacturer or an output service provider “TAKES” the Cenvat Credit on “inputs and capital goods” and which is not proper, he/they are liable for penalty under this sub-rule 15(1) albeit the fact remains that for recovery, the provisions of s.11A or s.73 applies as the case may be.

Rule 15(2) of CCR, 2004:

Rule 15(2) is apparently a sub-set of Rule 15(1) and visualizes a situation where a “Manufacturer” takes or utilizes CENVAT credit fraudulently etc. on ‘inputs and capital goods' and the rule prescribes a penalty in terms of section 11AC of the CEA'44 viz. penalty equivalent to the credit so taken/utilized.

Rule 15(3) of CCR, 2004:

This rule is almost akin to rule 15(1) in the sense it speaks of a situation where “any person” takes CENVAT credit in respect of input services , wrongly or in contravention of any of the provisions of these rules in respect of any input service, then, such person , shall be liable to a penalty which may extend to an amount not exceeding two thousand rupees.

So, if a manufacturer or an output service provider “TAKES” the Cenvat Credit on “input services” and which is not proper, he/they are liable for penalty under this sub-rule 15(3) albeit the fact remains that for recovery, the provisions of s.11A or s.73 applies as the case may be. However, there is a subtle difference between rule 15(1) and 15(3) and which is that the maximum penalty envisaged is only two thousand rupees.

Rule 15(4) of the CCR, 2004 :

This sub-rule is akin to rule 15(2) of the CCR, 2004 except for the fact that it applies exclusively to a “ provider of output service ” and who takes or utilizes CENVAT credit fraudulently etc. on ‘ input services ' except that the rule prescribes a penalty in terms of section 78 of the Finance Act, 1994 viz. penalty which can extend to twice the amount of credit so taken/utilized.

Thanks Negi ji

Manojkumar (Accounts Officer) (21 Points)
Replied 06 December 2012

Dear All

Can ER-4 return revised or not in aces ???

Reg,Manoj

Rakshit (practising) (338 Points)
Replied 08 December 2012

Penalty for filing ER`1 return late is imposed under rule 27 of the central excise rules, 2002, whereas in case of late filing of ER 5 & ER6 falls under rule 15 of the Cenvat Credit Rules, 2004. Further, there is nno provision to file revised ER4 return.

Raksh*t advrcverma @ gmail.com

KUNALA UPENDRA PANAKALU GUPTA (ACCOUNTANT) (28 Points)
Replied 12 December 2012

Dear Expert Sir,

Plz let me know wether the error in Dealer return for filing online is rectified or not

shankar (student) (97 Points)
Replied 13 December 2012

Dear Ritesh

Pls. find the details.

Departmental Instruction

F.No.267/117/2010-CX8

Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)

New Delhi, dated the 14^th January, 2011.

To,

All Director Generals,

All Chief Commissioners of Central Excise (including LTU),

All Commissioners of Central Excise (including LTU).

Sir/ Madam,

Subject: Enforcement of penal provisions for non-submission of returns-reg.

Under Central Excise Law, the assessee is required to file different categories of returns depending on its applicability to them. Some of them are monthly viz.ER-1, ER-2 and ER-6, some are quarterly viz. ER-3 and some others are yearly viz. ER-4, ER-5 and ER-7. Central Excise Law envisages self-assessment of duty by the assessee and filing of the prescribed returns periodically, so that department is kept informed about the assessment and duty payment by the assessee. Fundamental ingredient of this trust based scheme, is the regular filing of returns by the assessee. These returns enable the department to verify the duty payment, cenvat credit taken and other such parameters related to assessment.

2. It has been brought to the notice of the Board, that many assessees are not filing the returns at all and some others are submitting the same after long delays. This problem has been found to be more pronounced in the case of specialized returns like ER-5, ER-6 and ER-7. It has also been brought to the notice of Board that the field formations do not identify the defaulters and take necessary follow up action to ensure submission of these returns.

2.1 It is stated that scrutiny of returns is the essential and basic job of the Central Excise Ranges in the field formations. Scrutiny includes identifying the assessees who have not submitted the prescribed returns, and taking follow-up action to ensure that these returns are filed at prescribed periodicity. In this regards, it is also pointed out that penalty under Rule 27 of Central Excise Rules, 2002 and Rule 15A of CENVAT Credit Rules, 2004 can be invoked against such errant assessees.

3. In view of above, the Board directs that immediate action may be taken by the jurisdictional Commissioners to institute a mechanism to identify such defaulters, and ensure that follow-up action including invoking penalty under the provisions of Central Excise law are taken against them. The jurisdictional Chief Commissioners shall also monitor the proper working of this mechanism every quarter.

4. Receipt of this instruction may kindly be acknowledged.

Yours faithfully,

(Amish Kumar Gupta)

OSD (CX-8

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