Penalties under Finance Act waived if tax and interest paid pre-notice. Precedent followed.

The Appellate Tribunal CESTAT, Chennai held that penalties under Section 76 and 78 of the Finance Act, 1994 cannot be imposed if service tax and interest are paid before the show-cause notice is issued. Following the precedent in Shanti Casting Works Vs. CCE, Coimbatore, 2009 (15) STR 219, the penalties were set aside, and the appeal was allowed.

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The Appellate Tribunal CESTAT, Chennai ruled that penalties under Section 76 and 78 of the Finance Act, 1994 cannot be imposed if service tax and interest are paid before the show-cause notice is issued. The decision followed the precedent set in Shanti Casting Works Vs. CCE, Coimbatore, 2009 (15) STR 219. The penalties were set aside, and the appeal was allowed.

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