Show cause notice issued in breach of prior writ direction was set aside for violating the subsisting court mandate.

A second show cause notice issued after an earlier writ direction was invalid because the authority was bound to proceed on the first demand letter as the notice, consider the taxpayer's objections, grant personal hearing, and pass a lawful order. The court-held direction could not be bypassed by issuing a fresh notice on different allegations unless the earlier order was first modified or set aside. A delayed modification petition did not cure the breach of the subsisting judicial mandate, so the second notice was set aside.

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Issues: Whether the second show cause notice dated 12.10.2015, issued after the earlier writ order directing the petitioner to treat the first demand letter as a show cause notice and requiring the authority to decide the matter after hearing, was valid or was liable to be set aside.

Analysis: The earlier writ order had directed the petitioner to file objections by treating the first demand proceedings as a show cause notice and had required the authority to consider the reply, grant personal hearing and pass orders in accordance with law. The authority was bound by that direction and could not, without getting the earlier order modified or set aside, issue a fresh notice on different allegations. The attempt to file a modification petition after substantial delay did not justify disregard of the subsisting judicial order.

Conclusion: The second show cause notice was contrary to the earlier court order and was liable to be set aside in favour of the assessee.

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