Court stays demand notice due to lockdown impact; respondents served notice, directed to file counter-affidavit. The Court issues notice to the respondents in a challenge to a demand-cum-show cause notice dated 31.05.2021, citing non-compliance with circulars and ...
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Court stays demand notice due to lockdown impact; respondents served notice, directed to file counter-affidavit.
The Court issues notice to the respondents in a challenge to a demand-cum-show cause notice dated 31.05.2021, citing non-compliance with circulars and failure to address an extension request due to lockdown. Acknowledging the impact of the lockdown on compliance, the Court orders a stay on the notice's operation and directs the filing of a counter-affidavit within three weeks. The next hearing is scheduled for 31.08.2021, allowing for a rejoinder before further legal proceedings.
Issues: Challenge to demand-cum-show cause notice dated 31.05.2021; Non-compliance with circulars by respondent no. 3; Request for extension due to lockdown; Lack of response to extension request; Short timeframe for compliance; Stay on the operation of the impugned notice.
Analysis: The writ petition challenges the demand-cum-show cause notice issued on 31.05.2021. The petitioner argues that the notice contradicts Circular No. 334/3/2011-TRU issued by the Central Board of Excise & Customs (CBIC). Additionally, it is contended that respondent no. 3 failed to conduct pre-show cause notice consultation as mandated by CBIC, which required providing a reasonable timeframe to the petitioner. The notice for consultation was served on 28.05.2021, requiring the petitioner's appearance on 31.05.2021, amid a lockdown due to COVID-19. A request for a one-week extension was made, but the concerns were allegedly disregarded, leading to the issuance of the impugned notice.
The petitioner's grievance primarily revolves around respondent no. 3's failure to address the extension request adequately, considering the challenging circumstances of the lockdown. The Court acknowledges the impact of the lockdown on the petitioner's ability to comply promptly and deems the matter necessitating further examination. Consequently, the Court issues notice to the respondents, with Mr. P.S. Singh representing respondent no. 1/UOI and Ms. Sonu Bhatnagar representing respondent nos. 2 and 3.
The Court directs the filing of a counter-affidavit within three weeks, with a provision for a rejoinder before the next hearing scheduled for 31.08.2021. In the interim, a stay is ordered on the operation of the impugned demand-cum-show cause notice dated 31.05.2021, indicating a temporary halt to its enforcement pending further legal proceedings.
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