2017 (12) TMI 770

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....dent ORDER Per: S.S GARG The present appeal has been filed by the Revenue against the impugned order dated 7.4.2017 passed by the Commissioner (A) whereby the Commissioner (A) has dropped the entire penalty imposed under Section 78 of the Finance Act, 1994 and Rule 15(3) of CENVAT Credit Rules, 2004 (CCR). 2. Briefly the facts of the case are that during the course of audit of the reco....

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....tion 80, the Revenue has filed the present appeal on the ground that during the period 2008-09 to 2011-2012, the assessee had suppressed the value of taxable services by not including the reimbursement charges received from the customers and mis-declared in the sT-3 returns filed with the Department. 3. On the other hand, the learned CA for the assessee defended the impugned order and submitted....

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....er considering the submissions of both the parties and perusal of the material on record, I find that the present appeal filed by the Revenue is only confined to the dropping of penalty under Section 78 by extending the benefit under Section 80 of the Finance Act, 1994. Further, I find no infirmity in the impugned order whereby the Commissioner (A) has observed that there is no mens rea in the pre....

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....fact that the appellant has acted on his bona fide belief needs to be taken note of. The impugned demands are on account of dispute raised by audit, which aspects are still to attain finality and hence mens rea cannot be attached to the lapses detected. Thus, when mens rea is not present in this case, it is a reasonable cause for waiver of penalties by extending the benefit of Section 80 of the Fi....