service tax – If payment is made before adjudication, the quantum of penalty has to be restricted to 25%

Matter is covered against the revenue by judgement of Delhi High Court in K.P. Pouches (P) Ltd. v. Union of India 2008(228) ELT 31 which has been followed by the Tribunal, as also judgement of this Court in CCE v. J.R. Fabrics (P) Ltd. 2009 (238) ELT 209, holding that if payment is made before adjudication, the quantum of penalty has to be restricted to 25%. It was further held that second proviso resulting in denial of benefit of reduced penalty to cases where payment was made within 30 days of adjudication was not applicable if penalty was not determined in accordance with the first provis...