Service Tax Dispute Resolved: Voluntary Payment Nullifies Show Cause Notice Under Finance Act Section 73(3)

CESTAT adjudicated a service tax dispute, holding that the show cause notice (SCN) was not maintainable because the appellant had voluntarily paid the entire service tax with interest prior to SCN issuance. The tribunal found that sub-section 3 of section 73 of the Finance Act applies, as there was no deliberate suppression of facts or intent to evade tax. The provisions prohibiting self-assessment under sub-section 4 were deemed inapplicable. Consequently, the SCN was invalidated, the demand was set aside, and the appellant's appeal was allowed, affirming the taxpayer's right to self-correction without punitive proceedings. .....

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