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Penalty on late filing of excise return

K.Sanu Bhagat (Accounts Enthusiast) (122 Points)

16 January 2016

The Excise Return was filed within due date but the same was rejected. I scanned my X M L file for error but found none..came to know about the rejected return after 28 days and filed the return. What can be the max penalty imposed on me? Is there any way to solve this issue without paying any penalty?

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11 Replies

CA SHRAVANA DOTA (ACA) (125 Points)
Replied 16 January 2016

The maximum penalty for non filing/ late filing of Central Excise Returns can be Rs 5,000 under Rule 27 of Central Excise Rules, 2002.

The Central Excise Officer shall issue a Show Cause Notice demanding general penalty for late filing of returns under Rule 27 of CER, 2002. Based on the reply furnished by the assesse, the officer has the power to reduce the amount of Penalty based on reasonable ground, if any, for the delay.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 18 January 2016

in the remarks column if you brief history then the panlaty may be weived

always have an aknowledgement printed after submission of return, irrespective of acceptance or rejaection, it will help the assesee to face such situations in future

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Nagendra Hegde (Chartered Accountant) (1948 Points)
Replied 19 January 2016

Currently Penalty for late filing is governed by Rule 12 (6) of Central Excise Rules:

''Where any return or Annual Financial Information Statement or Annual Installed Capacity Statement referred to in this rule is submitted by the assessee after due date as specified for every return or statements, the assessee shall pay to the credit of the Central Government, an amount calculated at the rate of one hundred rupees per day subject to a maximum of twenty thousand rupees for the period of delay in submission of each such return or statement''.

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Nagendra Hegde (Chartered Accountant) (1948 Points)
Replied 19 January 2016

One of the ways to avoid such cases would be confirming the status of return (upload /filed / rejected) on next day of uploading

CA SHRAVANA DOTA (ACA) (125 Points)
Replied 19 January 2016

Thanks a lot Nagendra for updating us with the latest provision.

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PRAKASH A SOLANKI (Accountant) (42 Points)
Replied 22 April 2016

What I have to do while filling filling Er 1 return shows negative balance please reply me and there is any reduction filling excise return in current budget 2016. Please reply any one.

Thanks and regard,

Prakash

K.Sanu Bhagat (Accounts Enthusiast) (122 Points)
Replied 23 April 2016

Thank you so much for clearing the issue Mr. Nagendra.

So can the AO penalise @ Rs.100 per day till the delayed submission i.e. 28days * 100 = Rs.2,800/- or any higher amount can also be imposed?

Thank you again :)

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 23 April 2016

Originally posted by : PRAKASH A SOLANKI
	What I have to do while filling filling Er 1 return shows negative balance please reply me and there is any reduction filling excise return in current budget 2016. Please reply any one.Thanks and regard,Prakash

Negative balance of Tax?? then pay the same and submit

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 23 April 2016

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PRAKASH A SOLANKI (Accountant) (42 Points)
Replied 23 April 2016

Thank you sir

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prasanna (Retired Government Servent) (22 Points)
Replied 11 May 2017

in my view after Notf.No.08/2016 CE (NT) dated 01.03.2016 the penalty for Annual Capacity Return was removed. means that this penalty was not payable for earlier period also. what everybody thinks about it