Penalty not chargeable when tax paid before issue of SCN

The Tribunal adopts a balanced approach in a works contract dispute involving a government department and a foreign contractor. While upholding taxability under works contract service, it grants relief by setting aside penalties on account of pre-SCN tax payment. 

It further directs recomputation of liability by extending the benefit of the composition scheme, even where formal option was not exercised. The ruling reinforces that substantive compliance and prior payment can mitigate penal consequences.