Chapter V of Finance Act, 1994

1[77. Penalty for contravention of rules and provisions of Act for which no penalty is specified elsewhere.

(1)  Any person,—

3[(a) who is liable to pay service tax or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this Chapter shall be liable to a penalty which may extend to ten thousand rupees; ]

(b) who fails to keep, maintain or retain books of account and other documents as required in accordance with the provisions of this Chapter or the rules made thereunder, shall be liable to a penalty which may extend to 2[ten thousand rupees];

(c) who fails to—

(i) furnish information called by an officer in accordance with the provisions of this Chapter or rules made thereunder; or

(ii) produce documents called for by a Central Excise Officer in accordance with the provisions of this Chapter or rules made thereunder; or

(iii) appear before the Central Excise Officer, when issued with a summon for appearance to give evidence or to produce a document in an inquiry,

shall be liable to a penalty which may extend to 2[ten thousand rupees] or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;

(d) who is required to pay tax electronically, through internet banking, fails to pay the tax electronically, shall be liable to a penalty which may extend to 2[ten thousand rupees];

(e) who issues invoice in accordance with the provisions of the Act or rules made thereunder, with incorrect or incomplete details or fails to account for an invoice in his books of account, shall be liable to a penalty which may extend to 2[ten thousand rupees].

(2) Any person, who contravenes any of the provisions of this Chapter or any rules made thereunder for which no penalty is separately provided in this Chapter, shall be liable to a penalty which may extend to2[ten thousand rupees].]

 

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Notes :

1. Substituted by the Finance (No. 2) Act, 2004, w.e.f. 10-9-2004. Prior to its substitution, section 77, as amended by the Finance Act, 2001, w.e.f. 16-7-2001 and Finance Act, 1999, w.e.f. 11-5-1999, read as under:

“77. Penalty for failure to furnish prescribed return.—If a person fails to furnish in due time the return which he is required to furnish under section 70 or the rules made thereunder, he shall be liable to a penalty which may extend to an amount not exceeding one thousand rupees.”

Further substituted by Finance Act, 2008 w.e.f. 10-5-2008, prior to substitution it was read as under:

“77. Penalty for contravention of any provision for which no penalty is providedWhoever contravenes any of the provisions of this Chapter or any rule made thereunder for which no penalty is separately provided in this Chapter, shall be liable to a penalty which may extend to an amount not exceeding one thousand rupees.”

2. Substituted vide Finance Act, 2011, w.e.f. 8-4-2011, before it was read as, “five thousand rupees”

3. Substituted vide Finance Act, 2013, w.e.f. 10th May, 2013, before it was read as, “(a) who is  liable to pay service tax, or required to take registration, fails to take registration in accordance with  the provisions of section 69 or rules made under this Chapter shall be liable to pay a penalty which may extend to 2[ten thousand rupees] or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;”