PENALTY U/S 78 IF SERVICE TAX HAS BEEN DEPOSTED BEFORE SCN

[Mehul Pandya]

SIR,

WE HAVE PAID OUR FULL SERVICE TAX LIABILITY BEFORE ISSUE OF SCN. WE HAVE ALSO PAID INTEREST ON THE SAME AFTER OIO ADJUDICATED/PASSED. DO WE ELIGIBLE FOR PENALTY WAIVE U/S 78. PL. QUOTE SUPPORTING CASE LAWS IN THIS MATTER.

THANK YOU

AI Summary

Debate on Penalty Waiver Eligibility Under Section 78 of Finance Act: Tax Paid Pre-SCN, Mis-Declaration Impact A discussion on a forum revolves around the eligibility for penalty waiver under Section 78 of the Finance Act, 1994, after service tax and interest were paid before the issuance of a Show Cause Notice (SCN). One participant clarifies that reduced penalties are possible if the tax, interest, and a portion of the penalty are paid within 30 days of the Order-in-Original (OIO). Another participant argues that penalties should not be imposed if the tax was paid during an audit without intent to evade. The discussion also touches on the implications of mis-declaration and the terminology used in SCNs.