2014 (12) TMI 1090

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..... When there is no need to evade tax, extended period could not have been invoked. In these circumstances, the penalty under Section 78 of the Act which is to be imposed when there is an intention to evade duty or suppression, fraud or collusion, mis-declaration etc. could not have been imposed. Accordingly, penalty under Section 78 of the Act is set aside. Coming to the penalty under Section 77, t .....

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..... l, 2006 to October, 2007. The appellant admitted the lapse and paid service tax as well as interest. Thereafter proceedings were initiated for imposition of penalty as above. 2. Heard both sides. 3. Learned counsel for the appellant submits that there was no need for the appellant to evade payment of service tax since the appellant was eligible for the benefit of Cenvat credit and therefore, .....

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..... x. When there is no need to evade tax, extended period could not have been invoked. In these circumstances, the penalty under Section 78 of the Act which is to be imposed when there is an intention to evade duty or suppression, fraud or collusion, mis-declaration etc. could not have been imposed. Accordingly, penalty under Section 78 of the Act is set aside. 6. Coming to the penalty under Secti .....

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