Appellate Tribunal rules penalty not valid if service tax and interest already paid before notice.

The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessee, holding that the penalty cannot be imposed as they had already paid the service tax and interest before the show-cause notice. The decision was based on the Finance Act, 1994 and a CBEC Circular. The impugned order was set aside, and the appeal was allowed.

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The Appellate Tribunal CESTAT, Chennai ruled in favor of the assessee, stating that since they paid service tax and interest before the show-cause notice, penalty cannot be imposed. The decision was based on the Finance Act, 1994 and a CBEC Circular. The impugned order was set aside, and the appeal was allowed.

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