https://www.taxtmi.com/caselaws?id=444866 CESTAT Chandigarh held that SCN issuance and penalty levy were invalid where service tax was paid before SCN issuance. Under Section 73(3), no notice should be served when assessee pays service tax, except under sub-section 4 requiring fraud/suppression elements. Mere non-registration and non-filing returns insufficient to establish suppression without positive evasive intent. Extended period not invocable, penalty cannot be imposed on pre-paid service tax. Regarding bank guarantees to group companies under Banking and Financial Services, no service tax liability exists absent evidence of consideration received. Following precedent, corporate guarantees provided to banks/financial institutions for holding company/associate enterprises attract no service tax liability. Appeal allowed. en-us Fri, 20 Oct 2023 00:00:00 +0530 Wed, 25 Oct 2023 10:05:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444866 CESTAT Chandigarh held that SCN issuance and penalty levy were invalid where service tax was paid before SCN issuance. Under Section 73(3), no notice should be served when assessee pays service tax, except under sub-section 4 requiring fraud/suppression elements. Mere non-registration and non-filing returns insufficient to establish suppression without positive evasive intent. Extended period not invocable, penalty cannot be imposed on pre-paid service tax. Regarding bank guarantees to group companies under Banking and Financial Services, no service tax liability exists absent evidence of consideration received. Following precedent, corporate guarantees provided to banks/financial institutions for holding company/associate enterprises attract no service tax liability. Appeal allowed. Case-Laws Service Tax Fri, 20 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444866