Rejection of service tax return

Save Share

This query is : Resolved

Rahul Jain (Querist)

19 March 2015 My client has filed ST return for April-sep 2014 on 20/10/14, i.e, within due date

But due to our typing error, the return was rejected. When we came to know about this, we filed the same return.

Now, the service tax officer has sent a notice demanding penalty for late filing of return,

Whether the same will be payable or not. Pls help

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

19 March 2015 While filling service tax return after a day or two, need to check whether return got accepted or rejected. because while uploading itself the clear message will come as check the status after 1 day. since you have missed and return also got rejected. so it will be treated as return not filed, so penalty will be payable

Rahul Jain

Rahul Jain (Querist)

19 March 2015 These both judgement says, penalty not to be imposed, if due to technical error

"in the absence of malafide conduct, on the part of the assessee, it is not necessary to impose penalty on a person, even if the statute provides for the same"

1. Hindustan Steel Ltd., Vs State of Orissa [1978(2) ELT(J159)SC]

2. IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, BANGALORE
Service Tax Appeal No.156/2009
Arising out of Order-in-Appeal No.02/2008 Service Tax Dated: 15.1.2008
Passed by the Commissioner of Central Excise, Customs & Service Tax (Appeals) Cochin
Service Tax Appeal No.256/2009
Arising out of Order-in-Original No.18/2008-ST Dated: 31.12.2008
Passed by the Commissioner of Central Excise, Customs & Service Tax, Trivandrum
Date of Decision: 8.9.2010
M/s KERALA STATE INDUSTRIAL ENTERPRISES LTD
Vs
COMMISSIONER OF SERVICE TAX, TRIVANDRUM

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

19 March 2015 Technical error from the department side then your case law is helpful to you. but this is not technical error or website error from the department, it is assessess responsibility to ensure whether return filing process completed correctly. since typical error from your side how the department can not accept as technical error.

Absence of Malafide conduct only can prove if your rejected return and filed return has only the typical error not having any difference in the turnover and taxes. otherwise department may claim you filed some data with in due date intentionally avoid the penalty make rejected and after some time filed correct return.

Rahul Jain

Rahul Jain (Querist)

19 March 2015 yeah we filed exactly same return.
PLs give somemore case laws in support of this

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

19 March 2015 Incase you have Nil service tax payment during the half year, then you can request the Excise officer to waive of the penalty, else no option

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now