No service rendered, no requirement to file ST Returns, as not liable to pay ST : Kolkata CESTAT

Section 70 of the Finance Act, 1994 read with rule 7C of the Service Tax Rules, 1994 – Furnishing of returns – Assessee, a construction service provider, having registration under service tax, filed six NIL returns in Form ST-3 form for April, 2005 to March, 2008 on 18-11-2008 – Department sought levy of late fees under rule 7C of the Service Tax rules, 1994 and penalty under section 77 of the Finance Act, 1994 for such belated filing – Commissioner (Appeals) upheld levy of fees under rule 7C, but, dropped penalty – Assessee challenged levy of fees on ground that it had not provided any services during impugned period and it was not required to file any return – HELD : As per Circular No. 97/8/07-ST, dated 23-8-2007, if no service is rendered by service provider, there is no requirement to file ST-3 Returns – Further, even as per rule 7C, in case of filing of NIL returns, Assessing Officer has discretion to waive late fees for filing ST-3 returns and this is a fit case to invoke proviso to rule 7C and waive late fees – Hence, late fees levied under rule 7C ibid was set aside. Suchak Marketing (P) Ltd. vs. Com. Service Tax, Kolkata Appeal No. ST/393/2012 dated 05.02.2013 (Kolkata CESTAT)