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2016 (11) TMI 937 - AT - Service TaxService tax liability - Business Auxiliary Service - non-declaration of the correct value of an amount received from one of the clients as commission - imposition of penalty u/s 78 of the Finance Act, 1994 - Held that: - the appellant has admitted to short payment of the service tax liability and has paid the tax amount on being pointed out by the audit officers except for a small amount of ₹ 2.15 lakhs which was also paid off after issuance of show-cause notice. At this juncture we find that the contest in the appeal before us is only for the penalty imposed and as upheld. We find from the records that the appellant’s conduct prior and post to the period in question by discharging his service tax liability in time was being of a good assessee. There could be a bonafide error on the appellant’s part of not declaring the amount of ₹ 3.05 crores as the commission received in the ST return, but it is also undisputed that the said amount has been declared in the balance sheet as receipts. In our view this plea of the appellant that there was a bonafide error in not recording the amount in the ST-3 return is seems to be acceptable. In the facts and circumstances of this case, by invoking the provisions of Section 80 of Finance Act, 1994, we set aside the penalty imposed by the adjudicating authority under Section 78 of Finance Act, 1994 - appeal disposed off.
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