Waiver of penalty in certain cases for non-filing of returns within prescribed time : Trade Circular No. 21T of 2009, dtd. 4-7-2009.

Part B : Indirect taxes

Updates in VAT and Service Tax :

53. Waiver of penalty in certain cases for non-filing of
    returns within prescribed time : Trade Circular No. 21T of 2009, dtd.
    4-7-2009.

In pursuance of the announcement made by the Finance
Minister in his Budget Speech, the Commissioner has announced a scheme for
waiver of penalty as follows :

(a) if the dealers, who have not filed one or more
returns for the periods starting on or after 1st April 2005 and ending on
30th June 2009, file all such pending returns electronically along with the
due payment with interest on or before 31st July 2009, then penalty for late
filing of returns will not be levied.

(b) In a case where for the period starting on or after
1st April 2005 and ending on 30th June 2009, if penalty is imposed and
recovered, then the dealer will not be entitled for the refund of such
amount.

(c) In a case where the penalty has been already levied
for non-filing of returns but the same has not been paid by the dealer, it
will not be recovered if the dealer files all his pending returns
electronically with payment of tax and interest up to 31st July 2009.

(d) Where the penalty is already levied and the dealer
has filed an appeal against the said penalty order, then the said penalty or
part of the penalty outstanding shall not be recovered if the dealer files
all his returns up to 31st July 2009 along with payment of tax with
interest. The dealer must however, withdraw the appeal against such order
unconditionally before availing this benefit. The part payment made in
appeal shall not be refunded.