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TMI Blog2017 (5) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... n perusal of records, I find that the issue is in a short compass, Accordingly, reject the request for adjournment and take up the matter for disposal. 3. The short issue that arises for consideration in this appeal by the Revenue is whether the first appellate authority was correct in setting aside the penalty imposed by the adjudicating authority under Section 78 of the finance Act, 1994 or otherwise. 4. On perusal of records. It transpires that the respondents were providing services under the category of erection, commissioning and installation services, during the period October 2006 to March 2011, they had short paid the service tax which was notice by the audit party during the scrutiny of their records. On being pointed out, the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and delayed payment, extended period was correctly invoked and it is to be held that there is suppression. He would submit that the impugned order may be set aside and the appeal may be allowed by upholding the penalty imposed by the adjudicating authority. It was pointed out by the learned AR that there was a short payment of Rs. 4,40,685/- at the time of issuance of show-cause notice and it was made good by the respondent before adjudication. 6. On careful consideration of the submissions made by learned AR and perusal of records, I find that the only question that falls for consideration in this case is whether the respondent need to be saddled with penalties under Section 78 of the Finance Act, 1994 of otherwise. 7. I find that both t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e High Court of Karnataka in the case of CST, Bangalore Vs. Motor world [2012(27) STR 2 (Kar.)] wherein their lordships have held that there must be an honest belief in existence of state of circumstances which might have made the assessee not to discharge the tax liability in time. Respectfully following the same this Tribunal in the case of Punj Lloyd Ltd. Vs. CCE & ST. Rohtak [2015 (40) STR 1028 (Tri. Del.), has held that extended period cannot be invoked for short / non-payment of service tax liability. In sum, I hold that the impugned order setting aside penalty under Section 78 of the Finance Act by invoking the provision of Section 80 is correct and legal and does not suffer from any infirmity. 9. In view of the foregoing, I reject ..... X X X X Extracts X X X X X X X X Extracts X X X X
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