TMI Blog2017 (5) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax before 25.10.2010 - benefit of section 80 of the FA, 1994 extended to appellant - appeal allowed - decided in favor of appellant. - ST/60339/2016-SM - Final Order No. 60596/2017 - Dated:- 22-3-2017 - Mr. Ashok Jindal, Member (Judicial) Shri Rajnish Dahmi, Consultant for the appellants Shri Harvinder Singh, AR for the respondent ORDER Per ASHOK JINDAL: The appellant is in appeal against the impugned order wherein the penalty under section 77 and 78 of the Finance Act, 1994 has been confirmed by the Commissioner (Appeals). 2. The facts of the case are that the appellant got registered under commercial construction service with effect from 26.6.2007. During the scrutiny of the records on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re audit, in that circumstance, the benefit of section 80 of the Finance Act, 1994 is to be given to them. Moreover, it is their prayer that as the adjudicating authority has already granted the benefit of section 80 of the Finance Act, 1994, in that circumstance, the order of the Commissioner (Appeals) is not sustainable holding that there is no reasonable cause shown by the appellant for waiving penalty. 4. On the other hand, learned AR strongly opposed the contention of the learned Consultant and submits that it was in the knowledge of the appellant that they were required to pay service tax. If no audit took place, they are not required to pay service tax with this intention the appellant has not paid service tax. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is that they are paying VAT on their activity before obtaining registration from the department. Moreover, the registration was also granted. In that circumstance, the appellant was under bonafide belief that they are required to pay service tax after registration. Further, I find that the appellant has paid entire amount of service tax payable by them before audit took place. In these circumstances, I hold that the appellant has been able to show a reasonable cause for non-payment of service tax before 25.10.2010. In that circumstance, I hold that the adjudicating authority has already given the benefit of section 80 of the Finance Act, 1994 to the appellant. Consequently, I set aside the impugned order and uphold the order of the adj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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