https://www.taxtmi.com/caselaws?id=377488 CESTAT Chennai held that service tax liability is discharged only when payment is made or manifested in records, not merely when CENVAT credit balance exists. The appellant paid service tax belatedly by adjusting CENVAT account on 21.3.2012, making them liable for interest under Section 75 of Finance Act, 1994. However, since tax demand was fully paid before show cause notice issuance, penalty under Section 78 was unwarranted. The tribunal set aside the penalty while upholding interest liability. Appeal allowed in part. en-us Wed, 30 Jan 2019 00:00:00 +0530 Fri, 16 May 2025 10:43:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377488 CESTAT Chennai held that service tax liability is discharged only when payment is made or manifested in records, not merely when CENVAT credit balance exists. The appellant paid service tax belatedly by adjusting CENVAT account on 21.3.2012, making them liable for interest under Section 75 of Finance Act, 1994. However, since tax demand was fully paid before show cause notice issuance, penalty under Section 78 was unwarranted. The tribunal set aside the penalty while upholding interest liability. Appeal allowed in part. Case-Laws Service Tax Wed, 30 Jan 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377488