https://www.taxtmi.com/caselaws?id=31440 Payment of service tax and interest before issuance of a show cause notice can bring proceedings to a close under the statutory scheme reflected in Sections 73(1A) and 73(3) of the Finance Act, 1994, as clarified by the departmental circular dated 03.10.2007. Where suppression is alleged, the law permits only such penalty as is specifically attracted on those facts; additional punitive consequences are not automatically sustainable once tax and interest have been discharged in advance. On that basis, the tax and interest liability remained payable, but the penalty under Section 78 was limited to 25% of the service tax amount, and the penalties under Sections 76 and 77 were set aside. en-us Wed, 30 Apr 2008 00:00:00 +0530 Thu, 13 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=31440 Payment of service tax and interest before issuance of a show cause notice can bring proceedings to a close under the statutory scheme reflected in Sections 73(1A) and 73(3) of the Finance Act, 1994, as clarified by the departmental circular dated 03.10.2007. Where suppression is alleged, the law permits only such penalty as is specifically attracted on those facts; additional punitive consequences are not automatically sustainable once tax and interest have been discharged in advance. On that basis, the tax and interest liability remained payable, but the penalty under Section 78 was limited to 25% of the service tax amount, and the penalties under Sections 76 and 77 were set aside. Case-Laws Service Tax Wed, 30 Apr 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=31440