Penalty can’t be levied for Late filing of E-Returns If Manual Returns were filed within Time: CESTAT [Read Order]

In Ravel Electronics Pvt. Ltd vs. CCE, the Chennai bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that penalty can’t be levied for late filing of E-returns if manual returns were filed within the prescribed time.

In the instant case, the Revenue issued show cause notices to the assessee alleging that the monthly returns in ER-1 was filed belatedly and therefore, there was violation of Rule 12 (1) and Rule 12 (5) of Central Excise Rules (CER), 2002, and Rule 9 (7) of Cenvat Credit Rules (CCR), 2004. Despite the assessee’s response, the adjudicating authority confirmed the penalty. The appeal of the assessee was rejected. Thereafter, assessee appealed to CESTAT.

The Counsel for the appellant argued that it had filed its monthly ER-1 returns manually, without any delay but the respondent without verifying the same had imposed the penalty only on the ground that the ER-1 return was filed electronically beyond the prescribed time limit.

The Bench comprising of Judicial Member P. Dinesha observed that the adjudicating authority should verify whether the manual returns were filed within the prescribed time. “If the same is in time then that proves the bona fides as claimed by the appellant even with regard to its reasons for the delay in filing ER-1 electronically. If the manual returns are in time, then no penalty lies. Therefore, the adjudicating authority shall verify as to the filing of manual returns as pleaded by the appellant and if the same is found to be within the prescribed period, then no penalty is to be levied.” observed the member.