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2014 (5) TMI 66 - HC - Service TaxPenalty u/s 78 - Invocation of section 80 - Held that:- Respondent is engaged in providing security services. For the period under consideration, he had short paid the service tax. The proceedings were initiated for recovery as well as penalty. The Commissioner holding that the respondent had manoeuvering intention in not paying the service tax in full. The respondent approached in appeal. The Tribunal in facts of the case held that the assessee had bona fide belief that as his clients did not pay service tax as indicated in the invoice, his liability to pay the same to the Department did not arise. The Tribunal noted that such nonpayment was by the service requirement of the assessee, which included Vadodara Municipal Corporation, Surat Municipal Corporation and Gujarat Electricity Corporation /Board. It was also noted that as and when he had received the payments, he had promptly paid the same with the authority. The Tribunal relied on the decision of the Karnataka High Court in the case of Commissioner of Income-tax, Bangalore v. Motor World, reported in [2012 (6) TMI 69 - KARNATAKA HIGH COURT]. When section 80 of the Act gives discretion not to impose penalty, if the assessee shows sufficient cause for not depositing the service tax and when the Tribunal has adverted to relevant facts to hold that there was sufficient cause on the part of the assessee - No substantial question of law arises - Decided against Revenue.
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