TaxTMI 
TaxTMI 
Amendment in 73(3) by Explanation 2 - Issuance of SCN when full tax deposited with interest
26 Feb 2010 
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Deposit of full tax with interest prevents penalty and renders show cause notices infructuous within the normal limitation period.
Where full service tax is deposited with interest before a show cause notice is issued, penalty is barred and a show cause notice becomes infructuous for the period covered by the normal limitation; this protection chiefly covers on the spot or audit prompted deposits but does not extend to tax admitted and deposited for periods beyond the normal limitation, which may still invite a show cause notice. (AI Summary)
Where full service tax is deposited with interest before a show cause notice is issued, penalty is barred and a show cause notice becomes infructuous for the period covered by the normal limitation; this protection chiefly covers on the spot or audit prompted deposits but does not extend to tax admitted and deposited for periods beyond the normal limitation, which may still invite a show cause notice. (AI Summary)
Please ref. to prepossed amendment in 73(3) by way of explanation 2. Does it mean that no show-cause notice can be issued,if full tax along with interest has been deposited before the issue of show cause notice.