Penalty cannot be imposed if tax and interest paid before notice. Tribunal sets aside penalty order.

The Appellate Tribunal CESTAT, Chennai held that penalty cannot be imposed if service tax and interest were paid before the show-cause notice. Relying on precedent and Finance Act provisions, the Tribunal set aside the penalty order, allowing the appeal.

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The Appellate Tribunal CESTAT, Chennai ruled that penalty cannot be imposed if service tax and interest have been paid prior to the show-cause notice. The decision was based on previous Tribunal orders and Finance Act provisions. The impugned order regarding penalty was set aside, and the appeal was allowed.

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