https://www.taxtmi.com/caselaws?id=265179 The Tribunal set aside the penalties imposed on the appellant under Section 78 of the Finance Act, 1994, as the appellant rectified the misclassification promptly and paid the differential tax liability with interest before the show cause notice. The Tribunal emphasized that penalty proceedings cannot be initiated if the service tax is cleared with interest, as per Section 73(3) and relevant circulars. The appellant's proactive payment and compliance with legal provisions led to the revocation of the penalties, highlighting the fair application of the law in this case. en-us Thu, 02 Jul 2015 00:00:00 +0530 Wed, 07 Oct 2015 07:59:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=265179 The Tribunal set aside the penalties imposed on the appellant under Section 78 of the Finance Act, 1994, as the appellant rectified the misclassification promptly and paid the differential tax liability with interest before the show cause notice. The Tribunal emphasized that penalty proceedings cannot be initiated if the service tax is cleared with interest, as per Section 73(3) and relevant circulars. The appellant's proactive payment and compliance with legal provisions led to the revocation of the penalties, highlighting the fair application of the law in this case. Case-Laws Service Tax Thu, 02 Jul 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=265179