TaxTMI 
TaxTMI 
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.
adjudication cases
17 Oct 2018 
5 Replies 
1561 Views Asked by
Service tax penalty exposure where tax not informed before notice; reductions possible on timely deposit during adjudication.
Voluntary payment of service tax with interest before issuance of a show-cause notice, if communicated to the Department, prevents service of the SCN; separate provisions relieve penalty where tax plus interest is paid within a short prescribed period after service of an SCN, while suppression or fraud triggers a penalty provision that may be reducible by deposit after adjudication. (AI Summary)
Voluntary payment of service tax with interest before issuance of a show-cause notice, if communicated to the Department, prevents service of the SCN; separate provisions relieve penalty where tax plus interest is paid within a short prescribed period after service of an SCN, while suppression or fraud triggers a penalty provision that may be reducible by deposit after adjudication. (AI Summary)