𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗲𝗻𝗻𝗮𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗵𝗼𝘄 𝗖𝗮𝘂𝘀𝗲 𝗡𝗼𝘁𝗶𝗰𝗲 𝗮𝗳𝘁𝗲𝗿 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗼𝗳 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Show Cause Notice (SCN) is not to be issued when the assessee has paid the Service Tax along with interest. There is no evidence that the appellant suppressed facts to evade tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: M/s. Servocraft HR Solutions Private Limited 𝗜𝘀𝘀𝘂𝗲: Imposition of penalties under Sections 77 and 78 of the Finance Act, 1994, after the appellant paid Service Tax with interest for the period from August 2010 to October 2010.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal held that no Show Cause Notice is needed under Section 73(3) when Service Tax with interest is paid. Since the appellant maintained transparent records and no evidence of suppression existed, penalties under Sections 77 and 78 were unwarranted and were set aside.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. Servocraft HR Solutions Private Limited Vs The Commissioner of Central Excise and Service Tax 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 40625 of 2013 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 07 March 2023 📜 This ruling reinforces that penalties cannot be imposed when Service Tax along with interest has been voluntarily paid, provided no intent to evade tax is established.