Pre-show-cause consultation and non-retrospective circulars protected the petitioner from further action on a high-pitch demand notice.

Pre-show-cause notice consultation under the applicable Board circular was treated as a relevant safeguard against a high-pitch demand notice, and the petitioner made a prima facie case for interim protection when that consultation had not been afforded. The later circular was read as not excluding such consultation altogether and, at the interim stage, as not expressing any retrospective operation. The Court noted that a benefit available under a statute, circular, or notification is not ordinarily taken away retrospectively unless that intention is expressly stated. The respondents were restrained from proceeding further on the impugned notice until disposal of the writ petition.

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Issues: Whether the petitioner was entitled to interim protection against the impugned show-cause-cum-demand notice on the ground that pre-show-cause notice consultation, as contemplated by the applicable Board circular, had not been afforded, and whether the subsequent circular could be applied retrospectively to deny that protection.

Analysis: The challenge rested on the assertion that the demand notice was issued in a high-pitch assessment without the pre-show-cause notice consultation contemplated in Circular No. 1076/02/2020-CX dated 19.11.2020. The subsequent circular relied upon by the respondents was read as not wholly excluding pre-show-cause notice consultation, but leaving room for a discretionary exercise by the authority. The Court further held, at this interim stage, that the later circular did not state that it would operate retrospectively, and that a benefit available under a statute, circular, or notification cannot ordinarily be taken away retrospectively unless such intention is expressly indicated.

Conclusion: The petitioner established a prima facie case for interim relief and the respondents were restrained from proceeding further on the impugned notice until disposal of the writ petition.

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