Payment of Service tax/interest/penalty — Issuance of show cause notice and conclusion of proceedings — Clarifications

Conclusion of adjudication: voluntary payment of service tax with interest and penalty terminates Finance Act proceedings against the payer.

Payment of service tax with interest and the prescribed penalty by a person issued a show cause notice leads to conclusion of the entire adjudication proceedings under the Finance Act in respect of that person; where notices are served on other persons under the subsection, proceedings in respect of those other persons are also deemed concluded. The same payment-based conclusion principle applies to the parallel subsection for other cases.