adjudication cases

[IMMANUEL NEIHSIAL]

Sir,

The party has paid service tax along with interest/penalty before issuance of SCN. In the adjudication process what will be the penalty to be imposed upon the party under section 78 of Finance Act,1994.

thank you.

AI Summary

Exploring Service Tax Penalties: Payment Before Show Cause Notice May Avoid Penalty; Post-Issuance Penalties Explained Under Sections 76 & 78. A discussion on service tax penalties under the Finance Act, 1994, centered on whether a penalty is applicable when the tax and interest are paid before the issuance of a show cause notice (SCN). One participant noted that if the tax is paid before the SCN, no penalty is due under Section 76. Others highlighted that if the SCN is issued, a 100% penalty could be imposed under Section 78, which could be reduced by 75% if paid within 30 days of the adjudication order. The discussion also covered procedural nuances related to informing the department about payments.