Sufficiency of particulars in a show cause notice led to quashing of the refund demand and remand for fresh notice.

A show cause notice alleging excess refund under an inverted duty structure must disclose the basis and break-up of the demand so the assessee can give a meaningful reply. Where particulars are not supplied despite repeated requests, and the consequential order relies on the same bare assertion without explaining how the figure was worked out, the notice and order are unsustainable. The Madras HC quashed the impugned order and remanded the matter for fresh consideration with a direction to issue a new notice containing all relevant particulars.

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Issues: Whether the show cause notice and the consequential order were vitiated for want of particulars and whether the matter required remand for fresh consideration.

Analysis: The notice merely alleged an excess refund on account of inverted duty structure without furnishing the basis or break-up of the amount demanded. The assessee repeatedly sought particulars to enable an effective reply, but the same were not supplied. The impugned order also proceeded on the same bare assertion without explaining how the figure was arrived at. A notice that does not disclose sufficient particulars cannot enable a meaningful response, and an order founded on such a notice is unsustainable.

Conclusion: The impugned order was quashed and the matter was remanded for reconsideration with a direction to issue a fresh show cause notice containing all relevant particulars. The assessee succeeded to that extent.

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