No Section 78 Penalty as Service Tax and Interest Were Paid Before SCN: CESTAT Chennai

SPI Technologies India Pvt. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, allowed the appeal to the extent of setting aside the penalty imposed under Section 78 of the Finance Act, 1994. The dispute before the Tribunal was limited to the imposition of penalty, as the appellant did not challenge the service tax demand on merits. The appellant contended that when the Show Cause Notice (SCN) dated 27.08.2013 was issued, the service tax liability under the Reverse Charge Mechanism had already been dischar...