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Petitioner's Challenge to Show Cause Notice Dismissed as New Proposals Sufficiently Linked to Original Six Proposals The HC dismissed the petitioner's challenge to a show cause notice dated 07.01.2022, finding that new proposals in the notice were sufficiently linked to ...
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Petitioner's Challenge to Show Cause Notice Dismissed as New Proposals Sufficiently Linked to Original Six Proposals
The HC dismissed the petitioner's challenge to a show cause notice dated 07.01.2022, finding that new proposals in the notice were sufficiently linked to the original six proposals from 20.12.2019. The court held that since the previous assessment order was annulled without restrictions and the department's appeal was dismissed, the respondent was entitled to issue the impugned notice. The petitioner was directed to submit a detailed reply with objections to the respondent within eight weeks for consideration and appropriate orders. No costs were awarded.
Issues: Challenging impugned show cause notice for exceeding scope of original notice and reiterating dropped demands.
Analysis: The petitioner, after facing an assessment order for the year 2018-2019, challenged the part of the demand confirmed and the part dropped. Subsequently, writ petitions were filed and allowed, leading to the dismissal of the department's appeal. The petitioner now contests a show cause notice dated 07.01.2022, arguing that it includes new proposals beyond the original notice of 20.12.2019, such as verifying ITC eligibility and discrepancies in tax invoices and registers. The petitioner asserts that demands previously dropped cannot be revisited.
The respondent contends that a previous court order set aside the entire assessment order and remitted the case for a fresh decision, resulting in the dismissal of the department's appeal. The respondent argues that the new proposals are clarifications on the original six proposals and fall within the scope of the earlier proceedings. The respondent urges the petitioner to comply with the jurisdiction of the respondent.
The court notes that the assessment order from 02.03.2020 was annulled without restrictions, leading to the dismissal of the department's appeal. The court finds that the impugned show cause notice's new proposals are linked to the original six proposals from 20.12.2019, indicating prima facie coverage. Consequently, the court rules against the petitioner's challenge to the show cause notice.
The court directs the petitioner to submit a detailed reply with objections raised in the writ petition to the respondent for further consideration and appropriate orders within eight weeks. No costs are awarded, and the connected miscellaneous petition is closed.
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